While Bitcoin was once seen as a mysterious technology favored only by those wanting to purchase illegal goods on the dark web, it has now entered the sights of many institutional investors, from Wall Street giants to the U.S. government.
Despite these advances, skepticism about Bitcoin has not completely dissipated. Traditional financial giants like JPMorgan CEO Jamie Dimon and investment legend Warren Buffett continue to criticize Bitcoin.
One of the pioneers in the cryptocurrency space, Blockstream CEO Adam Back, assessed the situation in an interview and stated that the ongoing skepticism about Bitcoin is not limited to the financial sector; even some well-known figures in the tech world find it hard to understand Bitcoin.
It’s also worth noting that some claim Adam Back is the real identity behind Bitcoin's creator, Satoshi Nakamoto. However, Back has vehemently denied these claims. Back is the founder of the proof-of-work concept that Bitcoin is based on.
“Even those who understand concepts like cryptography, peer-to-peer networks, privacy, and public-key encryption might be indifferent to it. It’s really surprising,” Buck said, describing some people's indifference to Bitcoin in the early cypherpunk community as “madness.”
Buck believes that Bitcoin is not a physical asset, which may lead some people to distrust it. However, Buck argues that these criticisms are unfounded because Bitcoin is based on physical resources such as energy and mining equipment. Many supporters believe that due to Bitcoin's total supply being limited to 21 million coins, its scarcity makes it a true hedge against inflation.
Even the code structure of Bitcoin is sometimes questioned. JPMorgan CEO Jamie Dimon raised a question in a statement in 2023: “Everyone says the supply of Bitcoin is capped at 21 million, but how is that guaranteed?” Dimon also described Bitcoin as “a pumped-up scam.” However, it is well-known that JPMorgan actively uses the blockchain technology behind Bitcoin.
Buck reminds us that Bitcoin was born after the 2008 global financial crisis, with the first block containing newspaper headlines about the bank bailouts at the time. He stated that those satisfied with the system find it hard to understand Bitcoin.
“If you have a well-paying job, are climbing the career ladder, and life doesn’t seem expensive to you, and you can afford a mortgage; the promise of Bitcoin may mean nothing to you,” Buck said, adding that Bitcoin essentially offers an alternative to the current order.
