Founder of JC Flowers: bitcoin (BTC) as an alternative payment method "is ridiculous"

J. Christopher Flowers, the former partner of Goldman Sachs and founder of JC Flowers, an American investment firm specializing in financial services, shared his thoughts on the potential of bitcoin.

Too slow and too expensive

According to the portal The Standard, the head of the investment firm JC Flowers, Christopher Flowers, shared with the public his vision of the potential of the first cryptocurrency at the SuperReturn conference held in Berlin. According to one of the world's most famous private investors, BTC is not suitable for use as a form of payment. Additionally, Flowers also called the biggest crypto active "ridiculous" :

“As a serious alternative payment method, bitcoin is ridiculous. It's too slow and too expensive ”.

We remind you that this week, the first cryptocurrency reached a new all-time high, hitting the $69,000 mark for the first time. Some analysts believe that the reason for this rapid growth of the largest crypto asset is that BTC is seen as an affordable and reliable way to hedge against inflation. And it is useless to deny the negative impact on the world economy of this one.

The public and target countries

However, Flowers criticized this theory, citing the fact that while bitcoin has zero correlation with gold, protecting against inflation is not the top priority for those who typically invest in crypto assets. According to the investor, the target audience of BTC is mainly representatives of the younger generation. And most of them, according to Flowers, aren't bothered by things like inflation at all.

The head of JC Flowers believes that the use of the first cryptocurrency is justified only in markets where there is little stability and where transaction costs do not matter. As an example, the investor cited Afghanistan and Venezuela.

Time will tell if Flowers is right. Let's just remember that BTC has performed well in countries such as El Salvador, whose residents rely heavily on remittances from relatives working overseas. Add here the low prevalence of banking services in the state, multiplied by the significant transaction costs for those for whom this type of service is still available.

Source: The Standart