Bitcoin is criticized as 'zero value'

"Multilevel model", "unreliable", "worthless" are comments made by several top financial 










Kristalina Georgieva, Director of the International Monetary Fund (IMF), compares several cryptocurrencies to pyramid multi-level models.

“When someone promises you a 20% return on something uncommitted with any real assets, what do we call it?” she questioned the model of sending Luna and UST for cash. Terra's 20% profit. "I call it a pyramid, a pyramid scheme in the digital age."

According to Georgieva, Bitcoin can be considered a coin of value, but cannot be called money because a prerequisite for something to be called money is that it must hold a stable value.

Georgieva also noted that some digital currencies will have certain value with different degrees of risk. For example, central bank-issued digital currencies will have value, because they are backed by the state. “It deserves the name stablecoin because it is backed by assets on a one-to-one basis,” the IMF chief emphasized.

She warned users that cryptocurrencies are not getting the backing of regulators. “The less backing cryptocurrencies have, the more prepared you should be for the risks ahead,” she said.

Despite her objections, Ms. Georgieva believes that digital currency should not be completely abandoned. Instead, they should be managed and knowledge of them more widely deployed to prevent people from making blind investments.
Previous Post Next Post

ADS