Despite the extremely positive last decade, Bitcoin has also received a lot of criticism and negativity. Such is the case with an economist from Lending Tree, calling it a pyramid scheme that has no real utility in the world. At the same time, a Chief Market Strategist noted that he actually owns five cryptocurrencies, but people need to be familiar with the possible risks.
Bitcoin – A Pyramid Scheme?
In a recent interview with Yahoo Finance, Lending Tree Chief Economist Tendayi Kapfidze spoke about several investment options, including the largest cryptocurrency. He seemed rather skeptical of Bitcoin, and even mentioned a lack of usage in the real world:
It’s a pyramid scheme. You only make money based on people who enter after you. It has no real utility in the world. They’ve been trying to create a utility for it for ten years now. It’s a solution in search of a problem, and it still hasn’t found a problem to solve. – He said.
In the same time, Bruderman Asset Management Chief Market Strategist, Oliver Pursche, admitted that he owns five cryptocurrencies, without specifying which ones exactly. He thinks that buying such assets would allow someone to get educated on the matter. He also says that he purchased them with a specific thought – “there’s something here. I just don’t know what it is.”
However, Pursche also warns of the possible risks, saying that people shouldn’t expect to become millionaires overnight and that they should understand such investments could lead to a potential loss.
Bitcoin’s Response
Bitcoin managed to prove people wrong over the last decade. A recent report showed that Bitcoin had been the best performing investment asset in the previous ten years, as it has delivered an 8,900,000% ROI. For reference, in the same timeframe, Netflix is the biggest stock gainer from the S&P 500 with a 4,181% return on investment.
Furthermore, Bitcoin has become much safer now with the hash rate recently recording a new all-time high.
As far as the lack of usage goes, that might not actually be the case. As Cryptopotato recently highlighted, several large industries are accepting Bitcoin payments today. People can use it to book flights and hotels, buy food, purchase technology, and even cars.
Additionally, adoption appears on the rise as well, as Bitcoin ATMs have increased with 56% during 2019 to 6,387.
BitcoinATMs. Source: coinatmradar.com
The post Bitcoin Is A Pyramid Scheme According To A Popular Economist appeared first on CryptoPotato.
The popular Ethereum wallet “MetaMask” is officially launching its own token, as confirmed by Consensys CEO Joseph Lubin. The team will also reportedly launch a decentralized autonomous organization (DAO) for funding the wallet’s growth. MetaMask competes with other self-custodial wallets like MyEtherWallet and Coinbase Wallet for interacting with web 3. Individuals and institutions can use…
The President of El Salvador – Nayib Bukele – disclosed that the country’s tourism sector has increased by 95% since it embraced bitcoin as an official means of payment. He criticized some central banking institutions, including the Federal Reserve, claiming their policies have washed out a big chunk of people’s savings. As such, Bukele expects…
Berachain’s (BERA) mainnet is finally live. The Layer-1 blockchain launched this morning, and the native BERA token jumped immediately. Traders are excited, with many speculating that Berachain could be huge in 2025. Some traders are wondering what’s next after this launch – with Meme Index (MEMEX) getting a lot of attention in its presale phase.
FTX founder and CEO Sam Bankman-Fried, also known as SBF, clarified that there are no plans to acquire cryptocurrency exchange giant Huobi, contrary to previous reports. Previously, TRON’s Justin Sun also denied similar rumors. Sam Bankman-Fried made the clarification in a tweet on Monday (August 29, 2022). According to the billionaire: “Just to be explicit…
Cryptocurrency exchange-traded funds (ETFs) have recently been trending as many companies seek approval to trade, stirring up a wave of enthusiasm and anticipation throughout the crypto community. As financial vehicles that track the price of cryptocurrencies, these ETFs offer a novel and seemingly more accessible way for investors to enter the crypto market. However, amidst
Tether Holdings Limited – the company behind the largest stablecoin USDT – revealed a net profit of around $700 million in the fourth quarter of 2022. It ended last year with excess reserves of $960 million and at least $67 million billion in consolidated total assets. Tether Remained Unfazed by the Bear Market Even though…
Bitcoin’s prolonged downward correction has encountered a pause in the vicinity of a significant support area, primarily defined by the 200-day moving average, sparking a slight rebound. However, the recent uptick appears to lack the necessary momentum, suggesting a potential phase of sideways consolidation. Technical Analysis By Shayan The Daily Chart A thorough examination of
BlackRock CEO Larry Fink said Bitcoin (BTC) is an asset class, comparing its investment potential to that of gold. In a recent earnings call, Fink emphasized that the world’s largest asset manager now views Bitcoin as an alternative to traditional commodities. Bitcoin Is an Asset Class “We believe Bitcoin is an asset class in itself.
The French Government’s Olympics committee is willing to run the Paris 2024 Olympic Games with minimum security risks for fans. As such, the organization might incorporate blockchain technology into its ticketing system and provide non-transferable, personalized passes to spectators. Blockchain to the Rescue According to a recent coverage, Michel Cadot – the interministerial delegate of…