Ben McKenzie, a reputable research analyst, recently shared his perspective on the true value of Bitcoin. He explained why he didn’t immediately invest in cryptocurrencies when they gained popularity. According to McKenzie, Bitcoin doesn’t function as a currency. It attracted many people because they could see what they wanted in it.
A cautious approach to the growing popularity of cryptocurrencies
Instead of rushing to buy cryptocurrencies when they started gaining popularity, McKenzie preferred to take the time to study and understand the emerging technology. He used his degree in economics to learn how the industry actually works. What he discovered surprised him.
Bitcoin: a currency or an investment?
McKenzie noted that Satoshi Nakamoto, the creator of Bitcoin, envisioned Bitcoin to function as a currency. However, according to him, the leading cryptocurrency doesn’t work that way. This made him more curious and prompted him to delve deeper into his research on Bitcoin.
Initially, McKenzie thought Bitcoin was a scam. He believed that the events surrounding the cryptocurrency industry in 2021 created the idea that it could be a massive Ponzi scheme. However, with more research, he realized that the reason cryptocurrencies attract many people is that they can see what they want in them.
The true value of Bitcoin
McKenzie acknowledged that the numerous features of Bitcoin are its main appeal, with users valuing it as an investment rather than a currency. However, he believes that the claimed amount of money, over 1 trillion dollars, in Bitcoin is not real. According to Alex Mashinsky, the actual amount of Bitcoin is 10 to 15%. McKenzie noted that individuals buying Bitcoin must understand that the real value of their digital asset is around 15% of the advertised figure. He meant that liquidity in cryptocurrencies is low and that the majority of volume in the market is leverage.
In conclusion, whether you’re an experienced investor or a beginner in the world of cryptocurrencies, it’s essential to do your own research and understand the risks associated with investing in these digital assets. Platforms like cyproview.io can help you track market trends and make informed decisions.
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