Odey Asset Management partner Tim Bond believes Bitcoin can potentially halt the normal functioning of society. Speaking to MarketWatch, Bond termed Bitcoin as an extreme form of libertarian anarchism with no real social utility.
He alleges Bitcoin’s ability to alter society might explain its popularity among key proponents.
“In this sense, bitcoin is the spearhead of a particularly extreme form of libertarian anarchism, which is presumably why it is so popular in Silicon Valley,” he said.
Bitcoin’s adoption to destabilize governments
Bond, who said he does not hold any Bitcoin, warns if the crypto replaces fiat currency, it will greatly destabilize governments’ economic plans. He adds that:
“If bitcoin starts to displace fiat currencies, governments’ ability to tax, spend and redistribute will be severely impaired.”
The survey notes that Bitcoin mining takes up 118.17 TWh of electricity annually. Bond adds that the asset has no value besides being speculative and aiding crime through money laundering.
Odey Asset Managemen has over $3 billion in funds under management.
Bond’s sentiments come even as several Silicon valley companies officially adopted Bitcoin contributing to the recent rally. Electric vehicle manufacturer Tesla (NASDAQ: TSLA) invested $1.5 billion in Bitcoin, contributing to its $58,000 new all-time high. Furthermore, online payment firm PayPal (NASDAQ: PYPL) enabled cryptocurrency transactions.
Bitcoin triggers crypto market sell-off
Although Bitcoin has remained bullish initially, the asset had mixed performances across the week, extending its losses. Bitcoin recorded its weekly high at $51,800 on Wednesday to trade at $47,572 by press time, according to data provided by Finvinz.com.
The drop began after U.S. Federal Reserve Chair Jerome Powell said he was monitoring financial conditions and would be “concerned” by disorderly markets, which resulted in Treasury yields higher and stocks lower. With Powell failing to ease consumer concerns, Bitcoin’s role as a hedge was tested.
Ethereum also followed suit, with prices dropping below $1,500. By the time of writing, the second-largest digital asset was trading at $1,479.
The Bitcoin price sell-off also triggered the altcoins to head in the red zone. Besides Ethereum, top altcoins by a market cap like Cardano (ADA) are down 5.57%, with Binance Coin (BNB) trading 6.5% down in the last 24 hours.