As we’ve mentioned in the past, bitcoin does not – and cannot – appeal to everyone, and now we can add another angry doubter to the growing list of skeptics.
Bitcoin Doesn’t Please Everyone
The latest person to say “no” to bitcoin is Tendayi Kapfidze, a chief economist at Lending Tree. He recently referred to bitcoin in negative terms, calling it a “pyramid scheme” that invokes questionable means of making money for its investors.
It’s a pyramid scheme. You only make money based on people who enter after you.
Kapfidze’s words mirror those of Berkshire Hathaway CEO Warren Buffett, another bitcoin skeptic who has never been afraid to express his views. He has often claimed that that the currency is something of a fraud; a unit of finance with value simply based on the idea that someone might be dumb enough to purchase it from you.
In an interview with CNBC last May, Buffett explained:
It’s a gambling device. There’s been a lot of fraud connected with it… It doesn’t do anything; it just sits there… I’ll tear off a button, here. What I’ll have is a little token… I’ll offer it to you for $1,000 and I’ll see if I can get the price up to $2,000 by the end of the day… but the button has one use and it’s a very limited use.
Everyone was excited by the prospects of Warren Buffett’s alleged lunch set with TRON CEO Justin Sun. The entrepreneur and crypto industry leader said that he would try to make a believer out of the long-time bitcoin skeptic and that he could potentially get him to understand the benefits and properties of digital currency.
Sadly, the lunch has yet to occur due to Sun allegedly suffering from kidney stones. He later apologized for overhyping the event and even incurred ridicule from individuals like antivirus mogul John McAfee.
One of the problems with bitcoin, according to Kapfidze, is that it is an alleged solution to non-existent trouble. Bitcoin is designed to alleviate some of the issues that arise from standard banks, which can deny people access to credit and other tools necessary for survival and purchasing everyday goods.
However, Kapfidze says that most banks are in solid shape, and don’t need to be replaced by a new financial entity. He claims:
[Bitcoin] is a solution that’s in search of a problem.
However, many disagree with his sentiment. Oliver Pursche – chief marketing strategist with Brunderman Asset Management – says investing in crypto is good considering it will get people prepared for blockchain, which he feels will be the primary technology of the future.
You Can Learn About Blockchain Through Crypto
For me, it’s a way to get educated on [blockchain]… If you want to learn about it, you’ve got to own [cryptocurrency].