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Bitcoin Lacks the Shock Absorbers Despite Bitcoin making big moves, some of the top political figures are criticizing the very essence of Bitcoin. One such personality is a Greek politician and former Finance minister, Yanis Varouakis. He recently responded to the open letter sent to him by Bitcoin socialist Ben Arc. Bitcoiner Arc wrote an open letter to address some of Yanis’s concerns that he noticed previously. Therefore, Yanis in response said that he was previously a blockchain admirer and continues to be but bitcoin fails to impress him. Mr Yanis said that the central banks can come over any major crash. They can print millions and trillions of dollars or any fiat whenever required to sustain crashes. On the contrary, if bitcoin was to be backed in critical times, then the central banks and financial corporations will collapse as it happened in 1929. Moreover, the bitcoin holders could probably face ‘a prisoners’ dilemma, where-in the money supply is hindered which is necessary for the businesses and jobs. And the people with more bitcoin could overpower the entire financial system. Also Read - China's Digital Yuan Is One Step Closer To Reality Amid Global Pandemic A massive bubble would be built on bitcoin Presenting another theoretical evidence on his disapproval of Bitcoin, Yanis said that Bitcoin’s dominance is a threat to the economy and the social life. He explains with an assumption, that if bitcoin has taken over the monetary system and outperformed the fiat currency, all would remain as it is like property rights, resources, machines, and pension would also be traded with shares on Wall Street. But the central bank would vanish and the bitcoin community would determine the global monetary supply. However, considering the institutions, they would function as normal but the private banks could take advantage of the situation and present a very complex Bitcoin derivative. If this continued, a massive bubble would be built on bitcoin and when it burst, there would be no central bank to back the situation. Bitcoin Community Educates Yanis Collectively, Yanis tried to explain the other effects of the bitcoin capitalization(if occurred) and the probable circumstances. However, his claims were completely dismantled by the bitcoin community. Ethereum founder, Vitalik Buterin, went on twitter to ask the advantages of the blockchain applications according to him. https://twitter.com/VitalikButerin/status/1287888712769179655 Another user ‘The Blockchain Socialist’ who propagates on how bitcoin facilitates the social economy, desired to invite Mr Yanis on his podcast series, to give him a clear picture of the technology. https://twitter.com/TBSocialist/status/1288075084129869824 In the end, Yanis an economist and an ex-minister of the country disagree with all the points that point to Bitcoin as financial aid. However, the circumstances portrayed by Yanis could be thought of but the role of bitcoin in the crucial times could probably be different than he termed. Cryptocurrencies, when regulated by the country’s authority, will possibly create a friendly space between the digital and fiat currencies. What’s your view on Bitcoin becoming the most preferred crypto assets amidst criticism surrounding its essence? Let’s discuss on Twitter. Tag us @CoinpediaNews You may find this interesting - Schiff and Pomp Live Debate on Bitcoin and Gold is No Less Than Fire

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