Oxford University Scientist Says Bitcoin Worse Than Ponzi Scheme
Robert McCauley, Doctor of History, Oxford University, suggested that while Bitcoin is promoted as the most efficient asset of 2021, it is much “worse” than the infamous Ponzi scheme.
In an author’s article published by the Financial Times, McCauley noted that comparing Bitcoin to the Ponzi scheme is an understatement.
According to McCauley, bitcoin has no fundamental value or basis for generating returns for investors. The scientist stated that making a profit from bitcoin is possible only on condition of constant purchases and sales of the asset.
He added that the collapse of Bitcoin would be more catastrophic than the collapse of the Ponzi scheme.
It is also interesting that he called the collapse of stablecoins pegged to the dollar as a critical weak point for Bitcoin. McCauley believes that the collapse of stablecoins, which occupy a significant portion of the cryptocurrency market, could easily disrupt the entire crypto ecosystem. He believes that the collapse of stablecoins is quite possible, since there is no regulation for this type of asset.
In addition, the author added that bitcoin cash flow is similar to the scheme of pumping and dumping penny stocks, which is built according to the Ponzi scheme. The scientist hinted that investors are buying worthless bitcoin in order to make a profit using pump and dump strategies.
He also noted that Bitcoin is a resource-intensive asset. McCauley stated that the energy consumption for Bitcoin mining is an issue that makes it much worse than the Ponzi scheme.
In addition, he noted that, as with the Ponzi scheme, only a few people in the Bitcoin ecosystem benefit. The scientist singled out miners who are guaranteed to receive their profit, provided the network is working.
McCauley also said that the creator of bitcoins Satoshi Nakamoto will remain anonymous and in the event of the collapse of the bitcoin pyramid, investors will not have a central person to return lost funds.