Key Takeaways
- Kenyan financial analyst says Bitcoin is similar to Ponzi scheme
- Kipng'etich believes that Bitcoin lacks true store of value
- Bitcoin has shown that it is the digital gold
Kipng'etich revealed this notion in a business summit this week when addressing questions on Bitcoin. He acknowledged that Bitcoin met the conditions of a currency since it was a medium of exchange and was increasingly used globally.
However, the financial analyst believes that the digital asset cannot attain a store of value. This is because any government or central issuing body does not back it. He further added that governments are the only institutions that can issue legal tender due to their position and can easily regulate the flow of a currency.
Kipng'etich concluded that based on this, Bitcoin was valueless and similar to Ponzi schemes. This stance is similar to that of several central banks in Africa that have banned the use of cryptocurrencies in recent years.
They typically claim that Bitcoin is valueless and that its bubble could burst at any time. However, the opposite is true, more institutions globally are adopting the leading cryptocurrency in recent months.
The decentralized nature of Bitcoin makes it an ideal store of value since it is not tied to any government or organization. For example, in 2020 when most currencies and assets like Oil fell to record lows. Bitcoin was able to experience a massive bullish run that increased the currency's value by more than 100%.
This ensured that Bitcoin lived up to its nickname "digital gold" as holders could preserve and increase the value of their capital during the global pandemic. However, as more countries look to develop their national digital currencies, notions like that of Kipng'etich will no longer hold weight.
Do you approve of Kipng'etich declaring cryptocurrency as a Ponzi scheme?
