The Swedish founder of Bitcoin.com Emil Oldeburg has sold all of his Bitcoin, saying the cryptocurrency is “the riskiest investment you can make”.
Speaking to Swedish website Breakit, Oldeburg said Bitcoin was practically unusable because of the long waiting times for transactions and the unusually high transfer fees.
(Bitcoin.com CTO Emil Oldeburg. Image: Breakit)
“An investment in bitcoin right now I would say is the most risky investment you can make. It is an extremely high risk,” said Oldeburg.
“I’ve actually sold all my bitcoins recently and switched to bitcoin cash.”
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Oldeburg believes smaller, more blockchain-focused cryptocurrencies like rival bitcoin cash will become commonplace as people move towards using cryptocurrency for everyday transactions.
“It costs a lot to transfer Bitcoins to and from the stock exchanges,” said Oldeburg.
“When I sold my Bitcoin I had to pay 50 dollars and wait 12 hours for the transaction to go through because of this. It’s completely unreasonable.”
The tech entrepreneur opted not to disclose what he made by selling all of his Bitcoin, but said for the last three years his yearly salary had been paid in Bitcoin – easily making him a multi-millionaire now.
Bitcoin.com was founded in 2011 and offers investors services such as a Bitcoin exchange, a digital wallet, Bitcoin gambling and online forums.
The website has seen an enormous uptick in subscribers as Bitcoin’s meteoric growth captures the attention of mainstream investors.
Just three months ago Bitcoin was trading at $4,140 – today it is five times more profitable, trading at $25,000 per coin.
As Bitcoin grows, so too does claims of a bubble.
Last week Jordan Belfort, aka the “real” Wolf of Wall St, said the digital currency was “guaranteed” to fail.
Joseph Stiglitz, a Nobel Prize-winning economist, said while digital currency was a good thing, the lack of regulation around Bitcoin means it should be outlawed.
“Bitcoin is successful only because of its potential for circumvention and lack of oversight,” Stiglitz said two weeks ago.
“It’s a bubble that’s going to give a lot of people a lot of exciting times as it rides up and then goes down. The value of a bitcoin today is expectations of what bitcoin is going to be tomorrow.”
At the time of publishing, Bitcoin was trading at $24,647 AUD.