Analyst: Bitcoin's value lies only in artificial scarcity and criminal applications

A Forbes columnist believes that the value of Bitcoin lies solely in its illegal uses.

In his article published yesterday, Jason Bloomberg, president of the analytics firm that calls itself “the first and only industry analytics and consulting firm focused on rapid digital transformation,” revealed a “chilling truth” that we must face.

Bloomberg mentioned the IRS's tax collection of Coinbase and Bitcoin's use in ransomware in the article. He said, "Bitcoin has almost no underlying value other than its artificial scarcity or its function as a speculative medium."

He added:

On the contrary - Bitcoin has value to some people because it is a medium of exchange for criminals. If we could eliminate illegal uses of Bitcoin with the click of a button, the internet of money would be worthless.

Bloomberg used the examples of the IRS and Coinbase to prove his point about the world’s most famous cryptocurrency. Bitcoin will become a valid payment method in Japan this Saturday after the country’s lawmakers recognized the digital currency as having the same properties as the yen.

This article contains several arguments from the analyst, but its main point is that "Bitcoin's tax avoidance function is tantamount to digging its own grave."

The IRS subpoena is the latest development in a years-long crackdown on criminals who use Bitcoin to conduct a variety of illegal activities.

In the United States, most Bitcoin traders are breaking the law.

Bloomberg asked a question about “law-abiding citizens who pay their taxes on time” who might also be interested in Bitcoin:

Will the criminal use of this network currency have a negative impact on its other use cases, such as blood diamonds (the high profits and funds generated by the sale of diamonds are then invested in anti-government armed conflicts)?