7.4 C
Tuesday, March 28, 2023

China Blockchain Alliance Executives – Virtual Currency the Largest Ponzi Scheme in Human History

Virtual Currency the Largest Ponzi Scheme in Human History – Virtual currency is “undoubtedly the largest Ponzi scheme in human history,” according to executive director He Yifan and chairman Shan Zhiguang of the Chinese Blockchain Service Network (BSN) Development Alliance. Additionally, they noted that this Ponzi scheme has changed over time and is “no longer just about cash.”

- Advertisement -

The BSN chairman and his colleague attacked virtual money and bitcoin in a recent opinion piece that was published by the People Daily Online newspaper by pointing out that at least 90% of the 100 richest people in the world had bad mouthed it. The duo also explains the factors that caused them to share a negative opinion on bitcoin or other virtual currency.

Also Read: Reports Claim Russia Defaulted on Foreign Debt for the First Time in a Century

 They wrote:

“This kind of Ponzi scheme is known as “equity-type” and has three key characteristics: first, it is based on denominated equity; second, the equity can be traded and circulated; and third, and most importantly, the equity is entirely fictitious and unrelated to any asset, productive labor, or social value.”

- Advertisement -

The two claim that because there is no connection between the equity in Ponzi schemes using virtual currencies and real assets or labor, the risk is nearly infinite. According to Zhiguang and Yifan, it is clear that the characteristics of virtual currency are consistent with those of a purported equity Ponzi scheme.

The BSN chairman and Yifan use dogecoin as an example elsewhere in the article to demonstrate how just one prominent figure may manipulate or control the value of a virtual currency.

“So it’s easy to understand that Musk can turn his hands on dogecoin as a cloud, and turn his hands into a rain.” The duo asserted that the price of virtual currency may be made to fall with just a tweet.

Also Read: Zimbabwe to Hike Benchmark Rate to 200%, Central Bank Minted Gold Coins to Act as Store of Value

Zhiguang and Yifan claimed in their opinion piece that blockchain technology, which underpins the majority of cryptocurrencies, “should not be neglected,” despite their position on virtual currency. To ensure that the blockchain plays “a big role in numerous application fields,” the duo argued that regulation technology is still needed.

- Advertisement -


Please enter your comment!
Please enter your name here

More From Evoclique