Cryptocurrencies Work on ‘Fraudulent’ Business Model Says Hotmail Founder
Blockchain technology and cryptocurrencies are having an important impact in the world in many different fields. This can be comparable to the internet when it just appeared and the impact it had in important companies. But Hotmail’s founder is not sure about this.
Hotmail Founder Skeptic About Cryptos
While talking with the news outlet, Arabian Business, Sabeer Bhatia, Hotmail’s founder, said that cryptocurrencies use a business model that is based on fraud. He said that virtual currencies are just white papers about how they dream the world will be.
This is not the first time that an important figure in the technological field gives negative comments about virtual currencies. Bill Gates, Microsoft founder said that he ‘would short bitcoin’ if there would be an easy way to do it.
Bhatia said that he believes that the dotcom bubble had companies with a viable business model rather than what cryptocurrencies are doing now.
About this situation, Mr. Bathia commented:
“The likes of Pets.com and the Books.com were at least versions of e-commerce platforms that are only growing today. There [were] missteps back then but, guess what, we’re doing everything online today. They were right… but they were too early and didn’t have the staying power like an Amazon. Those failures tried to pick a vertical and wanted to be the solution for that segment. [There’s] nothing wrong with that.”
Furthermore, he pointed out at IOTA, which is one of the most important virtual currencies in the market at the moment. He said that IOTA is based on the Internet of Things (IoT) but they have never sold any device to anyone in the world. Moreover, he explained that the company has only an idea that has never been implemented and it is worth $15 billion dollars.
Currently, IOTA is the 9th most important cryptocurrency in the market and it is worth $3.4 billion dollars. There are currently three cryptocurrencies with more than $15 billion dollars market capitalization: Ripple (XRP), Ethereum (ETH), and Bitcoin (BTC). Bitcoin Cash (BCH) is slightly under this value at $14.78 billion dollars.
Moreover, he said that blockchain technology may have some benefits for cross border transactions, but investors will lose money because these assets are offering ‘too good to be true’ proposals that do not create value for society.
Mr. Bhatia explained that the most successful companies in the last 10-15 years have been networks like Facebook, WhatApp or Instagram. He concluded saying that virtual currencies do not generate positive things for society as a whole.