Cybersecurity expert John McAfee explained why Bitcoin is not a bubble. In an interview with RT, McAfee defended Bitcoin from people saying it is a Bubble stating that it is not and it will continue to grow.
Known for his bold predictions that Bitcoin will reach $500,000 within three years, he’s confident that Bitcoin cannot be considered a bubble.
Bitcoin is not a fiat currency
Asked why the word “bubble” cannot be applied to Bitcoin, McAfee explained that Bitcoin is not a fiat currency.
John McAfee, Founder of McAfee Inc. says:
“Bitcoin is not a fiat currency. It costs over a thousand dollars to create a Bitcoin today in electricity and computing cost.”
He also added that the value of Bitcoin is directly correlated to its number of users and the equivalent number of transactions.
John McAfee adds:
“The value of Bitcoin is linked to the number of users and the number of transactions.”
To further explain why Bitcoin cannot and should not be considered a bubble, he continues to describe how Bitcoin grows.
He said that while people use it for speculative purpose, it is not and cannot be tagged as a speculative investment. He said that the value of Bitcoin grows, as the Bitcoin network grows.
John McAfee explains:
“It is not a speculative investment even though it is being used as such by other people. As Bitcoin network grows the value of Bitcoin grows. As people move into Bitcoin for payments and receipts they stop using US Dollars, Euros and Chinese Yuan which in the long-term devalues these currencies.”
Meanwhile asked about Bitcoin’s stability with regards to Mark Cuban’s tweet which resulted in Bitcoin’s drop, McAfee said it has no relation whatsoever.
He said temporary fluctuations are meaningless and are only created by speculators who don’t have fundamental understanding of Blockchain technology.
In closing, McAfee said that Bitcoin is not something you pick out in the air because there is a metric to it:
“The more people use Bitcoin, the more valuable it will become, that's the only metric we can use.”