A portfolio manager at one of London’s leading hedge funds warned that bitcoin, probably the best-known cryptocurrency, has no real social utility other than a tool for speculation and a means of laundering proceeds of crime. Tim Bond, partner and portfolio manager at Odey Asset Management, also told MarketWatch that he was hurting the planet: “In my opinion, bitcoin is a particularly vile asset class.
“If bitcoin starts to crowd out fiat currencies [government-issued currency that is not backed by a commodity], the ability of governments to tax, spend and redistribute will be severely affected. “Read: Reduced dividends, smoother growth and an economy racked by zombie companies – that’s the post-pandemic future seen by this Odey fund manager. He believes that Bitcoin could prevent society from functioning efficiently and ethically. “In this sense, bitcoin is the spearhead of a particularly extreme form of libertarian anarchism, which is presumably why it is so popular in Silicon Valley.” he said. Odey Asset Management, which has more than $ 3 billion of funds under management, was established in 1991 by billionaire Crispin Odey. Bond said that neither he nor he has a stake in bitcoin. Bitcoin mining is a form of auditing or record keeping that uses the processing power of the computer. Bond cited a calculation by the Center for Alternative Finance at the University of Cambridge that the mining Ría de bitcoins consumes 118.17 TWh of electricity per year. Read: Bitcoin is hitting the mainstream even as its environmental toll increases “Bitcoin mining takes place mainly in Asian economies (65% in China) where the electricity supply comes from coal and other fossil fuels,” he said . “Therefore, we can calculate that bitcoin mining produces around 55 million metric tons of CO2. [carbon dioxide] per year, equivalent to the annual CO2 emissions of Finland and more than the emissions of countries such as Denmark, Sweden and Norway. “Therefore, Bitcoin has added CO2 emissions equivalent to the annual output of a medium-sized advanced economy. And as the price of bitcoin rises, mining activity will intensify, producing even higher levels of CO2 emissions. “It’s hard to think of any other human activity that is both so useless and so damaging to the planet.” Last month, electric car maker Tesla TSLA, -4.86% released a Securities and Exchange Commission filing detailing that it had spent $ 1.5 billion in bitcoin.