Bitcoin may have garnered immense attention and appreciation last year; however, a renowned economist from Lending Tree discards it by calling it nothing but a pyramid scheme with no real use case.
Although Bitcoin has seen more ups than downs in the past decade and successfully emerged as the best performing asset class by surpassing some ever-popular investment options like gold and stocks, it has seen its share of harsh critics who don’t miss an opportunity to pull it to pieces. One of them is the chief economist from Lending Tree, America’s most prominent digital marketplace that bridges the gap between borrowers and lenders.
Lending Tree economist pulls Bitcoin to pieces
In his interview with Yahoo Finance on 1st Jan 2020, Tendayi Kapfidze voiced out his opinion on how Bitcoin fares as an investment option. His approach, however, was rather pessimistic. According to him, the most well-known and adapted cryptocurrency is yet to find a substantial utility in the real world.
Bitcoin is like a pyramid scheme as investors rake in the moolah only with more people entering this market. More the number of people come after you, the more money you make, he explains. It’s been ten years since Bitcoin was found and experts are yet to find an appropriate utility for it. They are still searching for a problem that Bitcoin could potentially solve but let’s face it; there is none, Kapfidze added.
Meanwhile, crypto analysts point out that ever since digital currencies hit the commercial market, the environment has evolved favourably. Several central banks and leading financial institutions have delved into cryptocurrencies and even adopted some of them in one way or the other. Despite heightened interest from commercial entities, analysts call Bitcoin a speculative currency.
Bitcoin is high-risk
Oliver Pursche, a chief marketing strategist from Bruderman Asset Management that offers extensive money management services, claims that he owns at least five digital currencies. Although he didn’t name which ones, he hopes that at least one of them will strike gold. I bought crypto way back in 2016 and 2017 with the belief that they have what it takes to make it big in the financial industry. I just don’t know what it is, he adds.
Pursche also claims that cryptocurrencies offer a great way to learn about the emerging blockchain technology and that’s one of the reasons he became a crypto investor. The only way to truly understand cryptocurrency and its underlying technology blockchain, is by owning one, Pursche continues, however, it is purely speculative and that must be kept in mind before investing.
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