Robert McCauley, an academic from Boston College and Oxford, stated that Bitcoin (BTC-USD) is worse than a Ponzi scheme since the eventual use case for the cryptocurrency remains unknown, while its high energy demand renders it a “negative-sum game.”
McCauley wrote in the Financial Times that the roughly $20 billion invested in mining thus far “is gone.”
According to him, the underlying structure of Bitcoin trading is very similar to a Ponzi scheme, in that early investors are paid off by latecomers, and there is no economic value created in between.
A second non-resident senior scholar at the Global Development Policy Center at Boston University claimed that the Bitcoin (BTC-USD) system would kill society in the long run because of the costs associated with sustaining it, particularly in terms of electricity use.
“Every day, investors send money to miners. And the majority of it is flushed down the toilet on a daily basis. Most of it has been consumed by fire “he stated. “And that’s just the cost to the community as a whole. All of that is a failure.”
A professor at Oxford University, McCauley discovered that some Ponzi schemes were able to recuperate part of their losses even after their failure. Bernie Madoff’s swindle, which has repaid around 70 cents on the dollar at this point, was used as an example to prove this point
According to him, there would be no assets left to divide among the surviving investors if Bitcoin went out of…
