Chief economist calls Bitcoin a pyramid scheme
- Euro Pacific Capital CEO Peter Schiff described Bitcoin as "a Ponzi" that was running out of buyers.
- Some crypto experts believe that only early adopters and exchanges manage to make huge profits.
The chief economist at LendingTree, Tendayi Kapfidze, believes Bitcoin is a pyramid scheme. He recently told Yahoo! Finance that one can only become rich based on the number of people that join the market after you. Kapfidze also talked about Bitcoin’s lack of utility. He tweeted:
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.
According to a U.Today report, Euro Pacific Capital CEO Peter Schiff also described Bitcoin as "a Ponzi" that was running out of buyers. He said that Bitcoin’s price growth was due to whales manipulating the market. Fundstrat's Tom Lee, who tends to be super-bullish on Bitcoin, agrees that the crypto industry could be facing a slow death, with early adopters and exchanges being the only ones who managed to rake in huge profits.
Author
Rajarshi Mitra
Independent Analyst
Rajarshi entered the blockchain space in 2016. He is a blockchain researcher who has worked for Blockgeeks and has done research work for several ICOs. He gets regularly invited to give talks on the blockchain technology and cryptocurrencies.
