Fun

Kenyan Insurance Executive Calls Cryptocurrencies Ponzi Schemes, Warns Users This Will ‘End in Tears’

News Feed - 2021-08-02 02:08:10

Kenyan Insurance Executive Calls Cryptocurrencies Ponzi Schemes, Warns Users This Will "End in Tears"


A Kenyan insurance executive, Julius Kipng’etich has compared cryptocurrencies like bitcoin to Ponzi schemes and has urged his countrymen not “touch this.” In addition, Kipng’etich warned those already involved in crypto trading to be prepared for the consequences as this always “ends in tears.” Bitcoin as a Medium of Exchange


Interestingly, when addressing attendees of a business seminar, Kipng’etich does acknowledge that bitcoin already meets one of the conditions for it to be treated as currency. He said: Currency represents two primary things; it is a medium of exchange and a store of value. So any currency is medium, I give you so that you give something. Julius Kipng’etich.


Kipng’etich’s view of cryptocurrencies appears to be consistent with that of some central banks. For instance, in its 2019 consultation paper on crypto assets, the South African Reserve Bank (SARB) similarly acknowledges that “crypto-assets have the ability to be used for payments (exchange of such value) and for investment purposes by crypto-asset users.” Cryptocurrency Not a Store of Value


However, in terms of bitcoin being a store of value, Kipng’etich argues that since this is not backed by governments it, therefore, cannot be seen as a true store of value. According to the executive, only governments are mandated to issue currency by virtue of their positions. The executive explained: Government is the custodian to regulate how much value has been given. That’s why they issue currency because it represents an output…Then the central bank represents that output in currency.


Therefore, when measured against this standard, cryptocurrencies like bitcoin are valueless or “hot air” as Kipng’etich puts it.


Do you agree with Kipng’etich’s characterization of cryptocurrencies as Ponzi schemes? Tell us what you think in the comments section below. Multi-Billion Dollar Hedge Fund Goldentree Is Reportedly Adding Bitcoin to Its Balance Sheet FINANCE | 22 hours ago Big Investors Are Pushing up Valuations of Crypto Firms FINANCE | 1 day ago Tags in this story Bitcoin Ponzi scheme, crypto assets, Cryptocurrencies, medium of exchange, South African Reserve Bank (SARB), store of value


Image Credits: Shutterstock, Pixabay, Wiki Commons Show comments

News Feed

Bitcoin price drops below $59K as institutions stop buying stablecoins
Zoltan Vardai6 minutes agoBitcoin price drops below $59K as institutions stop buying stablecoinsBitcoin price saw its local bottom last time Tether minted $1.3 billion worth of stablecoins, which helped BTC recover over
Ripple Plans To Take 14% Of SWIFT Volume, USDC Lands On XRPL – What Does This Mean For XRP Price?
Reason to trust Strict editorial policy that focuses on accuracy, relevance, and impartiality Created by industry experts and meticulously reviewed The highest standards in reporting and pu
House votes to nullify SEC’s anti-crypto banking guidance SAB 121
Tom Mitchelhill1 hour agoHouse votes to nullify SEC’s anti-crypto banking guidance SAB 121The House of Representatives has voted to overturn controversial SEC guidance that has virtually blocked banks from custodying c
Martin Shkreli-led Trump memecoin DJT plummets 95%
Ezra Reguerra1 hour agoMartin Shkreli-led Trump memecoin DJT plummets 95%Roger Stone, a close aide to Trump, previously denied any involvement of the former president or his son with the TrumpCoin memecoin.630 Total view
Bitcoin halving could be a ‘sell-the-news’ event, at least for a few months
Nancy Lubale3 hours agoBitcoin halving could be a ‘sell-the-news’ event, at least for a few monthsAnalysts say Bitcoin’s halving could be a sell-the-news event as short-term speculators and BTC ETF purchasers book
Hong Kong Bitcoin, Ether ETFs wipe 2 weeks of inflow in a single day
Jesse Coghlan8 hours agoHong Kong Bitcoin, Ether ETFs wipe 2 weeks of inflow in a single dayNet outflows for Hong Kong’s crypto ETFs reached a record $39 million on Monday with bleeding felt across all six funds.3979 T
Ethereum underperforms Bitcoin, but is the ETH/BTC pair ripe for a turnaround?
Rakesh Upadhyay6 hours agoEthereum underperforms Bitcoin, but is the ETH/BTC pair ripe for a turnaround?Ether has been underperforming Bitcoin for several months, but that may be about to end.1547 Total views7 Total shar
Alleged Hydra Administrator Refuses to Provide Access to His Crypto Wallet, Report Claims
Alleged Hydra Administrator Refuses to Provide Access to His Crypto Wallet, Report Claims A Moscow court has ordered the seizure of the crypto wallet of one of the alleged administ
Report: Bored Ape Yacht Club Discord Attacker May Have Been Involved in Previous NFT Phishing Scams
Report: Bored Ape Yacht Club Discord Attacker May Have Been Involved in Previous NFT Phishing Scams On June 4, 2022, the Bored Ape Yacht Club (BAYC) Discord server was compromised
Interpol Apprehends CEO of Generation Zoe, an Alleged Cryptocurrency Scam in Argentina
Interpol Apprehends CEO of Generation Zoe, an Alleged Cryptocurrency Scam in Argentina Interpol has managed to apprehend Leonardo Cositorto, the former CEO of Generation Zoe, one o
CME’s Bitcoin Friday Futures launch with 31K contracts on day one
Ana Paula Pereira5 hours agoCME’s Bitcoin Friday Futures launch with 31K contracts on day oneCME’s new derivatives product allows market participants to hedge or speculate on Bitcoin price movements in the short term
Kyrgyzstan Central Bank Is Set to Introduce Bills to Monitor Crypto Exchanges Activities and Forcing Them to Apply for Permits
Kyrgyzstan Central Bank Is Set to Introduce Bills to Monitor Crypto Exchanges Activities and Forcing Them to Apply for Permits The National Bank of the Kyrgyz Re