China Blockchain Alliance: virtual currencies are a Ponzi scheme
China Blockchain Alliance: virtual currencies are a Ponzi scheme
Crypto

China Blockchain Alliance: virtual currencies are a Ponzi scheme

By Stefania Stimolo - 30 Jun 2022

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Executives of the China Blockchain Service Network (BSN) Development Alliance, Shan Zhiguang and He Yifan, have called virtual currencies the biggest Ponzi scheme in human history. At the same time, however, the two argue that blockchain technology should not be ignored.

China Blockchain Alliance against virtual currencies but in support of the technology

Despite the idea that virtual currencies are a great Ponzi scheme, there is still a belief in the potential of the blockchain

According to reports, it appears that the president of the China Blockchain Service Network (BSN) Development Alliance, Shan Zhiguang, and the executive director, He Yifan, stated the following:

“[The virtual currency is] undoubtedly the largest Ponzi scheme in human history. […] The value of blockchain technology should not be ignored because of virtual currency”.

The attack on virtual currencies and Bitcoin, comes after 90% of the 100 richest people in the world frown upon it. Not only that, the two executives also point out three reasons why it should be associated with a Ponzi scheme.  

  1. virtual currencies and BTC are based on equity that can be denominated; 
  2. the equity can be traded and circulated; 
  3. this equity is not associated with any assets, productive labor or social value, but is completely fictitious. 

For the duo, equity in virtual currency Ponzi schemes is not linked to any real assets or labor, so the risk is “close to infinite.” 

Blockchain technology should not be ignored

On the other hand, Zhiguang and Yifan make a strong case for the value of blockchain technology, suggesting that regulation is needed to ensure its role in various fields of application. 

Returning to virtual currencies, the executives mention Elon Musk and Dogecoin (DOGE) as an example to show that one individual can influence, manipulate, or control the price of a virtual currency. 

Recently, Musk himself reiterated his reasons for making Dogecoin his memecoin of choice. In fact, the CEO of Tesla and SpaceX, not to mention the richest man in the world, admitted that support for DOGE was not initially his idea, but of his Tesla employees, who encouraged and invited him to support Dogecoin. 

Sure enough, each of Musk’s tweets about DOGE has given wings to the crypto’s price, generating hype around it. 

Stefania Stimolo

Graduated in Marketing and Communication, Stefania is an explorer of innovative opportunities. She started out as a Sales Assistant for e-commerce, and in 2016 she began to develop a passion for the digital world, initially in the Network Marketing sector, where she discovered and became passionate about the ideals behind Bitcoin and Blockchain technology, which lead her to work as a copywriter and translator for ICO projects and blogs, and organize introductory courses.

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