The former minister of finance of Greece, Yanis Varoufakis, argued that Bitcoin cannot and should not displace fiat money while emphasizing that countries should adopt its underlying technology -- blockchain.
In an interview with news publication Greek Reporter, Varoufakis, a well-known BTC critic, cited the largest cryptocurrency’s limited supply as a major drawback. He asserted that Bitcoin and other currencies of its ilk lacked the mechanism to combat crises such as the covid-19 pandemic. He specifically attacked BTC’s limited supply -- a feature hailed by the primary crypto’s advocates -- as the biggest deterrent that prevents its widespread adoption. He told the paper that the world would be in a dire situation if Bitcoin replaced fiat money because there was no way of increasing its supply.
While Varoufakis is deeply concerned by BTC’s limited supply, the feature has drawn praise from several prominent investors. Paul Tudor Jones III, Stan Druckenmiller, and Bill Miller have all pointed at this quality as the main reason behind their sizeable purchases of the flagship cryptocurrency.
Like most Bitcoin detractors, Varoufakis is a fan of blockchain technology, which powers Bitcoin and most cryptocurrencies. Even countries like China, which have strict regulations against crypto trading, are experimenting with blockchain to design a new financial ecosystem that supports state-authorized digital currencies.