HomeBusinessVirtual Currency is the "largest Ponzi Scheme in Human History"

Virtual Currency is the “largest Ponzi Scheme in Human History”

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Virtual Currency is the "largest Ponzi Scheme in Human History"
Virtual Currency is the “largest Ponzi Scheme in Human History”

The chairman of China’s Blockchain Services Network Development Alliance (BSN), Shan Zhiguang insisted. He and his colleague insisted in a recently published op-ed that virtual currency is “the largest Ponzi scheme in human history”.  However, they have said that the “value of blockchain technology must not be ignored because of virtual currency.”

Opinion piece claims that 90% of the 100 richest people have bad-spoken virtual currency

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Op-ed published by the People Daily Online newspaper. The BSN chairman and his colleague begin their attack on virtual currency and bitcoin. They point to the fact that it has been “foul-mouthed” by at least 90% of the world’s 100 richest people. The duo also gives the reasons that forced them to view BTC or virtual currency negatively. They wrote:

This type of Ponzi scheme classifies as ‘capital type’. It has three main characteristics: first, it is based on the equity that can be denominated. Second, capital can be traded and circulated. Finally, and most importantly, this equity is not associated with any assets. It is not productive labor, or social value, but is completely fictitious.

According to the duo, equity in virtual currency capital in Ponzi schemes is not tied to any real assets or labor. The risk is “close to infinity.” Looking at the features of the virtual currency. Zhiguang and Yifan said it is evident that these are consistent with those of a so-called Capital Ponzi scheme.

Blockchain should not be ignored

Elsewhere in the article, the president of BSN and Yifan use the dogecoin example. They show how only an influential individual can manipulate or control the value of a virtual currency.

“So, it’s easy to understand that Musk can turn his practical dogecoin like a cloud and turn his hands into the rain. Sending a tweet can make the price of the virtual currency flat,” the duo claimed.

Despite their stance on virtual currency, Zhiguang and Yifan insisted on their op-ed. The blockchain technology which anchors most cryptocurrencies, “should not be ignored”. The duo suggested that regulatory technology is still needed to ensure that blockchain plays “a very important role in various fields of application.”


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