Nima Tabatabai, an MBA student of the Westminster Business School, London, UK, has disagreed with a recent Financial Times (FT) article that chronicled the opinions of some MBA students regarding Bitcoin and blockchain technology.
In a letter, Tabatabai expressed disappointment at apparent lack of insight shown by the responders quoted by the article. He countered most of the arguments and statements made by fellow MBA students as presented in the article.
The piece in question had called for responses from MBA students of some of the top business schools in the world in the aftermath of the successful HSBC blockchain-based finance transaction.
The article identified regulation as a considerable issue within the ecosystem and wanted to know the views of the students on the potential impact of government regulations on Bitcoin. According to Tabatabai, the article made for “disappointing reading” as the responders did not offer a visceral assessment of Bitcoin as far as Tabatabai is concerned. He then went on to offer his own opinions on the matter.
Tabatabai believes that Bitcoin is more than regular assets like oil or equities. In fact, Bitcoin is a monetary asset. As a result, the number one crypto is speculative in nature. He also said that Bitcoin is the epitome of Austrian Economics, calling it the hardest money ever created. Some notable Bitcoin enthusiasts such as Dan Larimer have described themselves as Austrian economists or proponents of the philosophy of Austrian economics.
The Westminster MBA student also declared that volatility is an essential component of the market. He identified the inelastic supply and variable demand metrics as part of the reason for the volatility. The total Bitcoin supply is capped at 21 million BTC. Tabatabai expects that the volatile nature of the market will continue until in-flow of money into the arena far exceeds the amount of money already in the market.
He also countered responders who said that blockchain and not Bitcoin holds the real value. There is a growing blockchain only trend that believes blockchain is the only value creation concept in the emerging crypto market. Tabatabai believes Bitcoin is the foundation upon blockchain implementation will be driven. Commenting on the matter, he said:
“Bitcoin is the underlying monetary asset around which economic incentives are aligned such that millions of actors across the globe are able to reliably operate/trust a decentralized, distributed ledger of ordered, immutable transactions — ie: a blockchain. The value is not in the technical architecture of the distributed ledger, but that the data inside it can be trusted without the need for third-parties.”
On the subject of the impact of regulations on the Bitcoin market, Tabatabai expressed his belief that regulations were inevitable. He refused to get into the argument of the degree to which regulation will impact the market. According to him, Bitcoin has enough resilience not to be affected by the regulatory storm.