A Kenyan insurance coverage government, Julius Kipng’etich has in contrast cryptocurrencies like bitcoin to Ponzi schemes and has urged his countrymen not “contact this.” As well as, Kipng’etich warned these already concerned in crypto buying and selling to be ready for the implications as this all the time “ends in tears.”
Bitcoin as a Medium of Alternate
Curiously, when addressing attendees of a enterprise seminar, Kipng’etich does acknowledge that bitcoin already meets one of many situations for it to be handled as forex. He mentioned:
Foreign money represents two main issues; it’s a medium of change and a retailer of worth. So any forex is medium, I offer you so that you just give one thing.
Kipng’etich’s view of cryptocurrencies seems to be per that of some central banks. As an illustration, in its 2019 session paper on crypto property, the South African Reserve Financial institution (SARB) equally acknowledges that “crypto-assets have the flexibility for use for funds (change of such worth) and for funding functions by crypto-asset customers.”
Cryptocurrency Not a Retailer of Worth
Nonetheless, by way of bitcoin being a retailer of worth, Kipng’etich argues that since this isn’t backed by governments it, due to this fact, can’t be seen as a real retailer of worth. In keeping with the manager, solely governments are mandated to situation forex by advantage of their positions. The manager defined:
Authorities is the custodian to manage how a lot worth has been given. That’s why they situation forex as a result of it represents an output…Then the central financial institution represents that output in forex.
Due to this fact, when measured in opposition to this commonplace, cryptocurrencies like bitcoin are worthless or “scorching air” as Kipng’etich places it.
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