Fun

Cryptocurrencies Have ‘No Intrinsic Value’ Says South African Hedge Fund Guru

News Feed - 2021-10-04 01:10:32

Cryptocurrencies Have "No Intrinsic Value" Says South African Hedge Fund Guru


Jean-Pierre Verster, the founder of a South African hedge fund Protea Capital Management, has said he does not believe there is “intrinsic value” in cryptocurrencies. He insists that cryptocurrencies have “elements of a Ponzi scheme” and for that reason, he has not invested in them. A ‘Wonderful Technology’


In remarks made during an interview, Verster however appears to adopt a stance on blockchain technology that is similar to that of cryptocurrency opponents. He explained: I think the technology of blockchain is a wonderful technology. And will find applications when it comes to having open ledgers – when it comes to transactions that you need to make sure are captured somewhere or recorded somewhere in a way that people can’t after the facts – fiddle with those recordings. For that blockchain is great.


Although he points to foreign exchange restrictions and hyperinflation as some of the legitimate factors that contribute to the popularity of cryptocurrencies, Verster still attacks “the application of blockchain into cryptocurrency.” Inevitable Crash


He also warns of an inevitable crash should all the people who wanted to get involved in the currencies finally do so. Verster explained further: So it has got these elements of a Ponzi scheme, which means that for a long period of time, prices go up, go up, and it looks like value increases, and then it all comes crashing down. So I have not invested in crypto myself.


These latest anti-crypto comments by Verster — who also confesses that he is no crypto bull — are a reiteration of his disdain for types of investments that make him “dependant on what the other person thinks the asset is worth.”


Do you agree with what Verster has said about cryptocurrencies? Tell us what you think in the comments section below. Axie Infinity Co-Founder Says Blockchain Game Plans to Launch a Decentralized Exchange BLOCKCHAIN | 1 day ago Italian Luxury Fashion House Dolce & Gabbana Sells NFT Collection for $5.7 Million BLOCKCHAIN | 2 days ago Tags in this story bitcoin intrinsic value, Blockchain, Cryptocurrencies, foreign exchange regulations, Hyperinflation, Jean-Pierre Verster, Ponzi Scheme, Protea Capital Management


Image Credits: Shutterstock, Pixabay, Wiki Commons Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article. Read disclaimerShow comments

News Feed

Unexplained transfers on LENX protocol spark rug pull concerns
Ana Paula Pereira2 hours agoUnexplained transfers on LENX protocol spark rug pull concernsMysterious withdrawals from LENX’s treasury have raised concerns about an ongoing slow rug pull on the protocol.619 Total viewsL
Bitcoin ‘Going Through the Roof’ Unlike Assets Controlled by Government, Says Former Fed Governor
Bitcoin "Going Through the Roof" Unlike Assets Controlled by Government, Says Former Fed Governor Former Federal Reserve Governor Kevin Warsh is bullish on bitco
Malaysia Will Not Adopt Bitcoin as Legal Tender, Government Says
Malaysia Will Not Adopt Bitcoin as Legal Tender, Government Says Malaysia’s deputy finance minister has clarified that the government will not adopt cryptocurrency as legal
Bitcoin’s Hashrate Soars 42% Higher Over the Last 3 Months Following Crypto Asset’s 36% Price Increase
Bitcoin’s Hashrate Soars 42% Higher Over the Last 3 Months Following Crypto Asset’s 36% Price Increase While bitcoin has been hovering above the $60K handle for a great majorit
Bank of Russia Accelerates Schedule for Digital Ruble Project
Bank of Russia Accelerates Schedule for Digital Ruble Project The Central Bank of Russia continues to step up efforts to test and issue the digital ruble, with a roadmap for the fu
Fed’s Inflation Nowcasting Data Shows Future CPI Increases, US Gross National Debt Hits $31 Trillion
Fed"s Inflation Nowcasting Data Shows Future CPI Increases, US Gross National Debt Hits $31 Trillion A recently published forecast stemming from the Federal Reserve Bank of Clevela
Guest Author9 hours agoBitcoin crash pre-halving? Stablecoin metric that marked 2019 top flashes warningTwo key BTC supply metrics show conflicting signals on whether a retracement will occur before the Bitcoin halving.3
US Marshals likely selling Silk Road Bitcoin, says lawyer
Amaka Nwaokocha39 minutes agoUS Marshals likely selling Silk Road Bitcoin, says lawyerThe lawyer’s claims spark questions about market stability amid the potential sale of Silk Road Bitcoin by the US Marshals.348 Total
Tucker Carlson Blames Recent De-Dollarization Movements on Russian Sanctions and US Dollar Weaponization
Tucker Carlson Blames Recent De-Dollarization Movements on Russian Sanctions and US Dollar Weaponization Tucker Carlson, host of Fox News and the “Tucker Carlson Tonight̶
Snowden Reacts to Bitcoin’s New Price Milestone — Whistleblower Tweets ‘One word: Bitcoin’
Snowden Reacts to Bitcoin"s New Price Milestone — Whistleblower Tweets "One word: Bitcoin" The price of bitcoin has just hit a historic milestone in a turbulen
US Regulators Target Bitcoin ATMs: 88% of the Funds Exit the Country via Machines
US Regulators Target Bitcoin ATMs: 88% of the Funds Exit the Country via MachinesBitcoin automated teller machines (BATMs) will become the next target for regulators, as world gover
Telegram to Pay Back Investors 110% After Gram Token Launch Fails – Again
Telegram to Pay Back Investors 110% After Gram Token Launch Fails - AgainTelegram has offered to refund investors after its scheduled release of the Gram token failed – again