Wermuth Asset Management (WAM), an investment firm regulated by the German family office and BaFin, has issued a statement voicing its skepticism about Bitcoin and cryptocurrencies and their impact on the economy.
"The Economy Could Be Better Without Cryptocurrencies"
WAM stated that the economy would be better off without cryptocurrencies because there would be more money for consumption and investment.
“No one has yet shown that cryptocurrencies contribute to the acceleration of productivity growth and overall well-being,” Wermuth economist and partner Dieter Wermuth said in a note. “But there were and still are significant costs.”
According to Wermuth, these costs include the socially undesirable redistribution of wealth in favor of insider crypto users, the high incomes of those dealing with a "fundamentally useless" asset in banks and asset managers, the costs to society by facilitating money laundering and tax evasion, and the recent There are costs involved in running extremely expensive and climate-damaging computer systems.
Wermuth argues that cryptocurrencies are not only useless but also harmful to environmental transformation. He argues that they consume enormous amounts of electricity, mostly from fossil fuels, and produce large amounts of electronic waste.
Founded in 1999 and headquartered in Berlin, WAM has a successful track record of identifying global macro trends and investing in disruptive technologies.
*Not investment advice.