Bitcoin and cryptocurrency have faced a $2 trillion crash over the last six months, and some experts fear worse is to come.
Last month, bitcoin sank below the $20,000 price threshold — marking its worst valuation in 18 months.
As Forbes points out, China’s Blockchain-based Service Network (BSN) has had its say on the current situation, calling bitcoin and cryptocurrency “the biggest Ponzi scheme in human history.”
Is cryptocurrency ‘the largest Ponzi scheme in human history’?
BSN is a state-backed initiative created to boost commercial adoption of blockchain technologies — the technology underpinning crypto — in China.
In a scathing article in the Chinese newspaper People’s Daily, Shan Zhiguang, chair of the BSN Development Alliance, and He Yifan, BSN executive director, wrote: “The author of this article believes that virtual currency is becoming the largest Ponzi scheme in human history, and in order to maintain this scam, the currency circle has tried to put on various cloaks for it.”
The writers of the article highlighted recent criticism by Microsoft founder Bill Gates and famous investor Warren Buffett. Last month, Gates derided cryptocurrencies as worthless assets and mocked NFTs, saying they are “100% based on greater fool theory.” Buffett, meanwhile, said in May that he wouldn’t buy all the cryptocurrency in the world for $25.
“All Ponzi schemes must have a steady stream of new investors to join in, so that the whole scheme can be maintained,” He and…
