Is Bitcoin a pyramid scheme? Tendayi Kapfidze, chief economist at Lending Tree, insisted Bitcoin and the host of cryptocurrency coins are nothing more than a pyramid scheme.
Despite an 80+ percent bitcoin price drop and the bloodbath cryptocurrency experience in 2019, Bitcoin was named dubbed the “most lucrative investment of the decade” by Forbes Magazine.
The award was not much of a surprise to the crypto community. After all, Bitcoin did gain 9,000,000%, an increase in a class of its own. No previous inventions, companies or stocks come close. So why did Mr. Kapfidze tell Yahoo Finance the first cryptocurrency project is a pyramid scheme?
“It’s a pyramid scheme. You only make money based on people who enter after you. It has no real utility in the world. They’ve been trying to create a utility for it for ten years now. It’s a solution in search of a problem and it still hasn’t found a problem to solve.”
Kapfidze thinks Bitcoin is a pyramid scheme because he is a traditional finance guy. His business, Lending Tree let people borrow money with high interest rates.
Loan sharks like Mr. Kapfidze is terrified at the possibilities; what Bitcoin and crypto may do to traditional financial powerhouses. Bitcoin/crypto can poke a big hole in his and his crooked friends pockets.
Bitcoin, cryptocurrency and the blockchain are solving real world problems. Digital currencies are going mainstream with or without Mr. Kapfidze. One day, he will acknowledge he was in the wrong side of history.
Some of the world’s largest financial institutions are warming up to cryptocurrency. A large number of banks, even countries such as China, Russia and Brazil are taking steps to create their own digital currencies. Do they think Bitcoin is a pyramid scheme? Obviously not.
Mathieu is a Information technology professional with over 15 years of experience. He started one of the first bitcoin blogs existed in 2010. He started writing about, investing in bitcoin and promoting the first cryptocurrency when only a few technological savvy people knew about it. Mathieu is a world traveler who enjoys culture, technology, finance, salmon, rice and beans. He’s cool, collected and knows a great deal about blockchain technology.