Tim Berners-Lee, the inventor of the World Wide Web, has spoken out about his concerns regarding cryptocurrencies even as the sector moves into the mainstream.
According to Berners-Lee, the cryptocurrency sector is riddled with speculation, a factor that makes it dangerous similar to gambling activities, he said in an interview with CNBC on February 19.
“It’s only speculative. Obviously, that’s really dangerous. <…> If you want to have a kick out of gambling, basically. <…> Investing in certain things, which is purely speculative, isn’t what, where I want to spend my time,” he said.
In his view, the rise of cryptocurrencies can be equated to the dot-com bubble that saw most companies earn high valuations but later crashed. However, the computer scientist noted that digital currencies could be useful for remittances if they are immediately converted back into fiat currency upon receipt.
Concerns with blockchain technology
At a time different industry players recognize the potential of blockchain technology, Berners-Lee suggested that the system isn’t fast or secure enough. At the same time, he noted that the future of the internet is not the currently highly touted Web3 but Web 3.0.
His sentiment comes when United States authorities have increased the regulatory crackdown on various crypto products and businesses in the space.
The latest round saw the Securities Exchnage Commsions (SEC) target staking and business entities that have allegedly sold cryptocurrencies as securities without registering with the agency.
Indeed, the British computer scientist adds to the growing group of individuals questioning the viability of the crypto space with concerns over their speculative nature. For example, Charlie Munger, the vice chair of Berkshire Hathaway (NYSE: BRK.A), has rebuked U.S. authorities for permitting the crypto industry, noting that digital currencies such as Bitcoin (BTC) are ‘worthless.’
At the same time, crypto proponents continue to advocate for the legalization of the sector citing benefits such as the ability to be used as an investment vehicle.