Cryptocurrencies Are Seen As “The Biggest Ponzi Plan In History”

Chinese experts rate cryptocurrencies as large-scale multi-level models and need to stay away.

Cryptocurrencies are considered Ponzi models

BSN senior leaders – China’s blockchain-based services network – crypto wallets and Web-based business types 3.0 are multi-level Ponzi models, recommending that everyone beware of this type.

BSN experts Shan Zhiguang and He Yifan commented that cryptocurrencies are “the largest Ponzi scheme in human history,” supported by communities “trying to keep the fraud going.”

According to him, the entire cryptocurrency now has no intrinsic value, based entirely on two factors: the confidence of those participating and the number of new entrants – the characteristics of the Ponzi model – using the money of the latter to pay the former.

Zhiguang and Yifan also emphasized that money-making models such as play to earn or move to earn now have a loose texture, only deceiving new players and quickly collapsing after a short time. “We have a fragile balance, sustained only by the trust of the participants,” Zhiguang said.

Crypto critics have long regarded this type of scheme as a sophisticated multi-level scheme, where fraudsters use money from new investors to pay someone who has invested before. Skepticism increased sharply as time passed, following the plunge of the market, which followed the so-called “winter of money.” The term refers to the gloomy period of the market when the price of cryptocurrencies is constantly falling and challenging to recover over a long period, in parallel with the masses of bad news coming in such as theft, scams, and bans by regulators.

Many investors lose

Investors who poured money into cryptocurrencies last year are making significant losses while increasingly cryptocurrency lending platforms, speculative funds, and stable bitcoin issuers are bogged down. Many other platforms also struggled with hundreds of millions of dollars in cyberattacks.

Among those who oppose cryptocurrencies most strongly is Microsoft co-founder Bill Gates. Recently, he said that cryptocurrencies and NFTs are more of a “find a fool” game. Meanwhile, billionaire Warren Buffett calls Bitcoin a “rat killer” and doesn’t create any value.

Earlier this month, a group of computer scientists from companies and organizations such as Harvard University, Microsoft, and Google signed a joint letter to American lawmakers urging them to resist crypto industry lobbying efforts and “regulate risky, flawed, and unproven digital financial instruments.”

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

Join CoinCu Telegram to keep track of news: https://t.me/coincunews

Follow CoinCu Youtube Channel | Follow CoinCu Facebook page

KAI

CoinCu News