The 20-year-old entrepreneur made the ballsy claims in a blog post at Wall Street Playboys. Moreover, Finman boldly declared that his Metal Pay platform could supplant both bitcoin and Libra.
Finman: Bitcoin is a dinosaur like MySpace
Finman says the reason why BTC will go extinct like MySpace did is because its adoption has stalled irretrievably.
In addition, he warns that Facebook's Libra is aggressively coming to crush bitcoin. That's exactly what the social media monopoly did to its early competitors.
"Much like Myspace was replaced by Facebook, it looks like Facebook’s Libra 'cryptocurrency' is trying to do the same to Bitcoin. If you’re someone who believes in cryptocurrency and what it represents, Libra is your worst nightmare."
Finman: Bitcoin is not practical
Finman wrote that while BTC has raised mainstream awareness of crypto, it has now hit a ceiling. And there are three main reasons for this:
- Regulatory murkiness.
- High fees and long transaction times.
- Crypto community infighting.
"Bitcoin’s adoption has stalled, and the barrier to its continued growth appears too tough to crack. This isn’t necessarily about its value as an investment – being treated like 'digital gold' is fine for a cryptocurrency that is seen as a way of getting rich – but more about Bitcoin’s use as an actual currency."
Lack of regulatory clarity is a problem
Finman says continued regulatory murkiness about whether BTC is a commodity or a currency has damaged its viability as a mainstream investment.
Because of this lack of clarity, Finman says bitcoin is languishing in "this weird middle ground," where it can be used to make purchases, but is often viewed as a store of value.
This ambiguity has also raised the hackles of the IRS, which recently sent 10,000 threatening letters warning crypto investors to pay their taxes.
This unfortunate image that bitcoiners have as tax evaders will inhibit further adoption, Finman says.
"As long as regulations are a mess, Bitcoin’s growth won’t move much," Finman said. "If you want institutional investors to get on board, you need to make this less murky."
Crabs in a bucket
Finman pointed out that high transaction costs and long processing times are further deterrents to mass adoption.
Finally, Finman says petty infighting is inhibiting bitcoin's growth. He notes that "competing factions, unstable forks, and misinformation" are holding it back from reaching its full potential.
"What’s the difference between Bitcoin, Bitcoin Gold, Bitcoin Cash, Bitcoin SV, and countless other forks? Which is the 'real' Bitcoin? These are questions that people have and the answers vary depending on who you ask.
This chaos is hurting Bitcoin’s ability to solve problems and become better. Every time fixes are proposed to enhance Bitcoin’s performance, there’s a risk that it will just create another fork and further fragment the community."
Finman: Metal Pay is the future of crypto
While rattling off all the problems he claims will render bitcoin extinct, Erik Finman touted Metal Pay, his crypto startup that he insists will take down Libra.
Finman called Metal Pay the "first ever all-in-one digital banking platform for cryptocurrency." He boasted that Metal Pay already has a working app, a "thriving marketplace, and a loyal user base."
Finman says Metal Pay is exactly what Libra wants to be, but will never become because it's being assailed on all sides from regulators.
On the Metal Pay website, Finman says he's so confident in the future of his project that he's prepared to invest all his bitcoin holdings in it. And he suggests you hop on-board his revolution.
Why? Because Finman says that while bitcoin is great, it's "flawed in the way that the Ford Model T was flawed — good for its time, but not the future of its industry."