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Financial analyst: Bitcoin is a huge pyramid schem

Financial analyst: Bitcoin is a huge pyramid schem Financial analyst: Bitcoin is a huge pyramid schem - bitcoin ponzi min

Compared to CNBC, well-known US financial analyst Gary Shilling has called Bitcoin “a kind of giant Ponzi scheme.” His investment firm therefore opened short positions on Bitcoin, Shilling said.

Shilling further stated that the opaque nature of the crypto industry makes him skeptical. He also had doubts because the identity of Satoshi Nakamoto – the inventor of Bitcoin – had never been disclosed.

The veteran investor was also skeptical about a fixed maximum amount of cryptocurrency. So he asked himself:

“Supposedly, there is a limit, but where in stone is set that you can not increase it?”

Finally complained it's also the amount of energy the miners consume.

Bitcoin as a “black box”

Shilling is a well-known crypto-skeptic. In August he admitted he did not understand Bitcoin and dismissed it as a “black box”. It seems Shilling has not changed his mind in the meantime. In the interview with CNBC, he said Bitcoin was not a currency. He cited three reasons for this. So Bitcoin is not a value store, it is not a substitute and it is not universally accepted.

In summary, Shilling said:

“It fulfills all the normal conditions for a currency [Bitcoin] simply not. The only purpose of Bitcoin I can imagine is for transactions that should not appear in the books of business, ie transactions in the underworld. I just can not recognize a legitimate purpose. It's a game. “

He joined Warren Buffet and Bill Gates, who are also negative on cryptocurrencies. In May, for example, Buffet had reviled Bitcoin as a “rat poison up two” and declared that it would only call “charlatans”. Bill Gates had said similar things, saying that cryptocurrencies are crazy, speculative gambling.

Next-generation billionaires are optimistic

By contrast, a younger generation of technology billionaires, like Jack Dorsey, Peter Thiel and Tim Draper, more positive about crypto currencies. They assume that Bitcoin will replace all other currencies. Draper was even so optimistic that he said Bitcoin will have a price of $ 250,000 by 2022. He maintains this forecast, also considering the price losses this year.

I had previously reported on Draper several times in the blog. He invested early in Skype, Tesla and Hotmail. Now he assumes that Bitcoin will be bigger than all three mentioned projects together. As a revolution, Bitcoin itself surpasses the Internet.

Overall, it seems that the border is roughly parallel to the generations. In the end, probably the younger generation is likely to prevail, simply because they have more time granted. The situation is also reminiscent of the early 1980s, when grandparents shook their heads in front of grandchildren's new home computers and could not have imagined that similar devices would affect all facets of life in the future.

Financial analyst: Bitcoin is a huge pyramid schem Financial analyst: Bitcoin is a huge pyramid schem -

Sources: CNBC, Twitter, Pixabay

Author: Peter Joost – Source Post: https://www.kryptovergleich.org/finanzanalyst-bitcoin-ist-ein- riesiges-schneeballsystem/

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