• James Howell has been trying to get his lost hard drive back for 10 years
• Howell mined 8,000 Bitcoin on his laptop after learning about Bitcoin in 2009
• The council have denied Howell’s requests to dig due to “environmental concerns”

A 39-year-old man is suing Newport City Council for $646 million (£495,314,800 million) in damages after losing his hard drive at a recycling center containing 8,000 Bitcoin.

James Howell accidentally threw out his hard drive in 2013 during a household clearout. According to WalesOnline, Howell had two hard drives of the same size. One was blank, while the other contained his Bitcoin.

He mistakenly put the one containing the Bitcoin into a black bin bag, which his then-girlfriend took to the tip. At the time of his loss, his Bitcoin was worth around $1.3 million (£1 million). However, within three months, their value had risen to around $11.7 million (£9 million).

Howell has reached an agreement, leaving him with 30% of his Bitcoin if the hard drive is found. The remaining would be split between his backers, the recovery team, and the council.

Howell states that despite meeting a representative of the council in 2013, he’s been “largely ignored.”

“I’m still allocating 10% of the value for the council even though they have been problematic throughout,” he said. “That would be £41m based on today’s rate but in the future, it could be hundreds of millions.”

Environmental concerns

A court filing states that Howell’s hard drive is located in Cell 2- Area 2 of the Docksway landfill.

If the hard drive is located, the dig would take around 18 to 36 months followed by 12 months of remediation work. Yet, despite promises to safely excavate the Newport site and to modernize the landfill, the council have rejected Howell’s requests to dig due to “environmental concerns.”

Howell’s lawyers claim that the council have “simply ignored” that 10% of Bitcoin could bring “a huge and desperately needed investment in the local community.”

Lawyers for the council argue that the hard drive belongs to the council because it was dumped at the tip. However, Howell’s lawyers deny this, claiming that the hard drive was never intended to be thrown away.

Howell said he didn’t want to go to court, but “this is the final shot.”

The case is expected to be heard in December.

While some of the top Wall Street players have joined the crypto bandwagon, banking giant Goldman Sachs prefers to look the other way around. Sharmin Mossavar-Rahmani, chief investment officer of the bank’s Wealth Management unit, shared her negative stance on the crypto space.

Crypto Isn’t An Investment Asset Class

Sharmin has been a long-time critic of cryptocurrencies and his stand remains the same despite the strong institutional demand for the asset class. In fact, she doesn’t consider crypto to be an investment asset class in the first place. In her interview with the Wall Street Journal, Sharmin said:

“We do not think it is an investment asset class. We’re not believers in crypto.”

On the other hand, Goldman Sachs competitors in traditional finance – BlackRock and Fidelity – have doubled down their efforts after most clients showed interest in Bitcoin. However, Sharmin stated that there’s no such demand from the clients of Goldman Sachs.

She points out that one of the reasons she finds no merit in the asset is due to the challenge of accurately assessing its value. “If you cannot determine its worth, how can you confidently take a bullish or bearish stance?” she questioned.

Furthermore, she criticized the industry, labeling it as hypocritical. She highlighted the discrepancy between the industry’s advocacy for financial democratization and the reality of a few individuals wielding significant control over key decisions.

Crypto Maverick Slams Goldman Sachs

In his latest newsletter, popular Bitcoin investor and entrepreneur Anthony Pompliano lashed out at the Goldman Sachs executive for denying Bitcoin and crypto the status of ‘investment asset class’.

Pompliano underscored Bitcoin’s evolving role as the premier digital currency of the internet. He highlighted that a growing generation, accustomed to digital interactions and spending significant time online, views Bitcoin as the global internet reserve currency and default store-of-value.

Addressing concerns raised by others in the financial realm, Pompliano countered assertions that Bitcoin lacks investment potential. Despite skepticism from some quarters, he emphasized the significant inflow of funds into the $2.5 trillion cryptocurrency market, particularly from institutional investors, as indicative of its growing legitimacy as an asset class.

Furthermore, Pompliano refuted claims that cryptocurrencies primarily facilitate criminal activities. He cited data indicating that illicit transactions account for less than 0.5% of total cryptocurrency transactions, challenging misconceptions about the sector’s integrity compared to traditional fiat currencies.

Regarding volatility concerns and assertions of Bitcoin’s lack of inherent value, Pompliano offered a perspective shift. He noted that Bitcoin’s volatility primarily pertains to its exchange rate against fiat currencies like the US dollar, while its purchasing power has consistently increased compared to fiat over recent years. This contrasted starkly with the declining purchasing power of traditional currencies, such as the US dollar, suggesting Bitcoin’s potential as a hedge against inflation and store-of-value asset.

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Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills.

The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.