Dieter Wermuth, an economist and partner at Wermuth Asset Management, believes that Bitcoin is a fundamentally useless asset. How true are his claims?
As Bitcoin rose to popularity, it has often received harsh criticism from the flagbearers of traditional finance. Since its inception, it has also been declared dead by almost 500 times.
The most recent attack on Bitcoin comes from Wermuth Asset Management, calling it: “a system for insiders to get rich quick, as well as a major climate killer, a result of the huge energy consumption of the datacenters that are crypto’s operational heart.”
Wermuth also writes, “Without crypto, the economy would be better off – there would be more money for consumption and investment.”
Debunking Wermuth’s Concerns for Energy-Extensive Mining
As the company specializes in climate impact investments, Wermuth took a dig at the energy consumption during Bitcoin mining.
However, last week, BeInCrypto reported that mining uses 38% less coal than the Electric Vehicle (EV) industry. In fact, Bitcoin mining is becoming increasingly greener, as more than 52% of energy is sourced through renewable energy.
Is Bitcoin Fundamentally Useless?
In the note, Wermuth pointed out that Bitcoin is a fundamentally useless asset. He says that it cannot be used to pay for stuff in a supermarket or to pay taxes.
However, multiple stores accept payment in Bitcoin, such as USAFoods, Whole Foods, etc. Over 200 Walmart US stores have Bitcoin ATMs as an initiative to introduce cryptocurrency into the business.
Yesterday, BeInCrypto reported that the fashion giant Ralph Lauren would accept cryptocurrency payments in Bitcoin, Ethereum, and Polygon Matic. Some stores of other fashion brands, such as Balenciaga and Gucci, also accept crypto payments.
Not just that, in Sep. 2022, the state of Colorado announced that it would accept cryptocurrency for tax payments.
Mocking the economy would be better off without crypto remark, Igneus Terrenus, the Business Development Executive at Mantle Network, tweets:
“Economy may be better off without forex, Vermouth Asset Management says in a memo (1923)
Economy may be better off without stocks, Sherry Asset Management says in a telegraph (1823)
Economy mayeth be better off without real estate, Port Asset Management sayeth in a manuscript (1523)
Œconomicus melior est sans commercium (Economy is better off without commerce), Oinos Household Management says on a papyrus (423 BCE)
[Economy may be better off without gold], [Scribes for Stewards] say on a cuneiform tablet (2023 BCE).”
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For BeInCrypto’s latest Bitcoin (BTC) analysis, click here.
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