Andrew Left, founder of Citron Research says the idea of decentralization, where power is shifted from the hands of centralized entities is the “stupidest thing ever” and pointed out that the only utility Bitcoin has is that it is a collective consciousness of people, with people buying because others are.
Web3 a big illusion
Left, one of the world’s best-known short-sellers, in an exclusive interview with Benzinga, said that Web3 is a big illusion, and it is only aimed at taking power away from big technology companies.
“I do not see any value in cryptocurrencies, especially altcoins. They do not have any utility. And Web3 is a big illusion aimed at taking power away from big tech companies… In a world where the Internet needs more governance, it is the most stupidest thing ever that nobody controls anything, while billions of dollars are being thrown towards it,” Left said.
BTC at $10,000 and ETH at $200
He added that he would not be surprised to see Bitcoin (CRYPTO: BTC) at the $10,000 level and Ethereum (CRYPTO: ETH) and $200 and that they neither have any utility nor are accepted as a means of payment.
"BTC and ETH are different. BTC is perceived value, so that can stay up as long as people want to buy it. It seems like it has a future as it is already part of our collective consciousness. ETH on the other hand is supposed to have utility, and it has none. I expect that price to go right back to $200," he said.
“The only people involved in buying Bitcoin are of the same community, as they see it as an asset. But it has no utility. On the other hand, there are companies that have real utility,” he added.
Asked to explain what real utility means to him, Left said there are companies that do things in the real world and generate profits.
Digital assets are solutions in search of problems
“Assets like NFTs on the other hand are only collectibles, solutions in search of problems,” he said.
He added that people are expecting that Ethereum will have real utility once it gets an upgrade. “But once they realize there is nothing to it, they will be like – Oh Gosh!”
Left further said that the usage of blockchain technology is marginal compared to the “hype” being generated around it, and the technology has issues that still need to be addressed. “I know companies like Oracle and IBM are using blockchain technology. However, there are several problems with it, and it is being experimented upon.”
Photo: Courtesy of citronresearch.com
