Crypto currency News : Crypto Currency flaws based on Mallouk

What Peter Mallouk feels about bitcoin.

“If you think it’s a fun way to try to make a big score, you’ll probably have better luck throwing darts at microcap stocks,” he wrote. “But if you’re doing it purely speculatively, and you’re prepared to lose all your money, keep doing what you’re doing.”

Despite his passionate hatred for bitcoin, Mallouk believes that cryptocurrencies “will likely remain part of the financial landscape indefinitely. But there’s very little reason to believe that bitcoin will be the one that stands the test of time.”

Fundamental Flaws

Mallouk said bitcoin has serious fundamental problems that will ensure its death, including:

Crypto transactions are purely speculative.

 “There are no real fundamentals to evaluate; bitcoin doesn’t produce any products or services, hire any employees or pay any dividends.”

Regulation will eventually stifle bitcoin.

“The minute bitcoin or any other cryptocurrency appears to have even the slightest chance of disrupting national monetary supply, I expect regulation to be swift and decisive.”

Bitcoin won’t stand the test of time.

“Other than the name recognition it carries in the market, it’s virtually indistinguishable from any of the other cryptocurrencies.”