He Yifan, executive director of the Blockchain Service Network (BSN) Development Alliance says Bitcoin (BTC) is a Ponzi scheme. According to the published post, the BSN chair justifies the decision of the Chinese government on banning crypto, noting that the scheme is all a scam.
In the report, Yifan noted that the massive embrace of virtual currencies like Bitcoin is heavily dependent on the hype of its users and not on the value of the perceived asset. He added that the value accorded to the digital asset is proportional to how many users subscribe to it, an ideology that is typical of a Ponzi scheme.
In furtherance of the claim that crypto is a Ponzi scheme, the report referred to a very recent occurrence in the crypto ecosystem – the Luna and UST crash. It is believed that the Network crashed because of its Ponzi nature.
Additionally, it was posited that while virtual currencies are developed on the blockchain, it is not the only digital asset that gives value for money on the platform. There are various potentials in the virtual world that are yet to be tapped into because of the hype around cryptocurrencies.
Hence, the report suggests that virtual currencies should be banned in other countries, as China has done. It is believed that it will create more room for individuals to explore other potentials in blockchain apart from cryptocurrencies, which provide real value.
Commenting in a report, Yifan said that he will never invest in bitcoin even if it is regulated in the future, he believes it has no value whatsoever.
This is not the first time that bitcoin is receiving a hit as it pertains to its durability and real value. The digital asset, amongst other crypto assets, has often faced the challenge of a question of its authenticity in comparison to real-world assets.
Warren Buffet had in a recent report said that he will not invest as little as $25 dollars in Bitcoin. He noted that the crypto asset makes him look stupid, bad, and evil, adding that it will amount to nothing in the future.