Tim Berners Lee- the inventor of the World Wide Web (WWW), believes cryptocurrencies are “dangerous” and investing in them is similar to gambling. However, he argued they could be useful for conducting transactions if converted into fiat when received.
In a recent media interaction, the British computer scientist best known for creating the World Wide Web warned investors to stay away from cryptocurrencies as they are “speculative” and replicate gambling. He said:
Investing in certain things, which is purely speculative, isn’t what, where I want to spend my time.
He also described the crypto sector as “dangerous” and saw similarities between its current status and the Dot-com bubble from the late 1990s. The dot-com bubble was a stock market bubble in the late 1990s. The period coincided with massive growth in Internet adoption, a proliferation of available venture capital, and the rapid growth of valuations in new dot-com startups.
The dot-com bubble collapsed in 1999, and the fall precipitated from March 2000 until 2002. Several tech companies that conducted an IPO during the era declared bankruptcy or were acquired by other companies. Others hung by a thread as their stocks plunged to levels so low it was never envisaged.
However, speculation was also high, and many failed to turn a profit triggering a massive crash. Some entities, including eBay or Amazon, endured the challenging times and now stand as giants in their field.
According to Berners-Lee, the advantage that Bitcoin and altcoins have is their ability to be employed in remittances. Nonetheless, he advised consumers to convert them to fiat currencies once received.
Web3 has recently emerged as an allegory for the updated extension of the World Wide Web based on blockchain technology and decentralization. The British scientist believes the next version of WWW should be called Web 3.0, which is somehow different from Web3 and would not incorporate such concepts.
However, the inventor of the WWW is not the only outspoken critic of cryptocurrency, comparing it to gambling. Charlie Munger, vice Chairman of Berkshire Hathaway, an American multinational conglomerate holding company headquartered in Omaha and a close ally of Warren Buffett, raised negative opinions regarding Crypto.
He said cryptocurrencies are just a “gambling contract” while refusing to recognize digital assets as either securities or commodities. He also complained about the delay in the regulation leading to a lack of investor protection. He suggested that America should follow China’s steps and ban cryptocurrencies.
In November, Todayq News reported that Munger described cryptocurrency as a currency for “kidnappers” in an interview. He expressed his anguish at the fact that once “reputable” Americans are aiding the industry’s survival. The millionaire asserted that reputation is crucial to success in the business world and that it is a grave error to damage your reputation by associating with fools and dishonest people. He also compared bitcoin to prostitutes and suggested that individuals take advantage of every “hot” deal.
Notably, before Berners-Lee, James Gorman, CEO of Morgan Stanley, an American multinational investment management and financial services company, had compared the crypto hype to the dot-com bubble in the late 90s and said that he believes many investors get persuaded by the trend or the boost.