In a recently published op-ed, Shan Jiguang, chairman of the Chinese Blockchain Services Network (BSN) Development Alliance, and his colleagues argued that virtual currencies are “arguably the biggest Ponzi scheme in human history.” However, they said, “We should not ignore the value of blockchain technology for virtual currencies.”
Opinion piece claiming that 90% of 100 richest people have said bad things about virtual currency
Shan Jiguang, chairman of the China Blockchain Service Network (BSN) Development Alliance, and He Yifang, executive director, said that virtual currency is “arguably the biggest Ponzi scheme in human history.” They also claim that this Ponzi scheme has since morphed into something that is “no longer just cash.”
In a recent opinion piece published by the People’s Daily Online newspaper (20) (21), the BSN chairman and his colleagues begin their attack on virtual currencies and bitcoin by pointing to the fact that they are “vilified” by at least 90% of the 100 richest people in the world. They also describe why they have been forced to view BTC and virtual currencies alikeand why they have been forced to view BTCand virtual currencies negatively. They write:
This type of Ponzi scheme is classified as “equity-type” and has three main characteristics: first, it is based on shares that can be built; second, the shares can be traded and circulated; finally, and most importantly, these shares are not associated with any assets, productive labor, or social value, and is completely fictitious.
According to the two men, because the shares of a virtual currency stock Ponzi scheme are not tied to any real assets or labor, their risk is “near infinite.” Looking at the characteristics of virtual currencies, Zhiguang and Yifan state that it is clear that these match the characteristics of so-called equity Ponzi schemes.
Blockchain should not be ignored
Elsewhere in the article, BSN President and Yifan use dogecoin as an example of how just one influential individual can manipulate and control the value of virtual currencies.
“So, it is easy to understand that Mask can use dogecoin as a cloud and turn its hand to rain.” Just by sending a tweet, he can make the price of a virtual currency go sideways,” the two claim.
Despite their stance on virtual currencies, Zhiguang and Yifan argued in their opinion piece that the blockchain technology behind most cryptocurrencies “should not be ignored.” However, the duo suggested that regulatory technology is still needed to ensure that blockchain “plays a major role in a variety of applications.”
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