Cryptocurrency is considered 'the biggest ponzi scheme in history'

 The Chinese expert assesses that Bitcoin and the cryptocurrency market in general is a large







According to the two of them, all cryptocurrencies today have no intrinsic value, relying entirely on two factors: the confidence of those who are participating and the number of new entrants - the typical characteristics of the model. ponzi - use the money of the latter to pay the former.

Zhiguang and Yifan also emphasized that money-making models such as play to earn or move to earn are now loosely structured, only tricking new players and quickly collapsing after a while. short time. "They have a delicate balance, maintained only by the trust of the participants," said Zhiguang.

In fact, critics of cryptocurrencies have long considered this type of scheme to be a sophisticated multi-level scheme where scammers use funds from new investors to pay back their previous investments. Skepticism has increased sharply in the past time, after the plunge of the market, leading to the so-called "crypto winter". This term refers to the gloomy period of the market when the prices of cryptocurrencies continuously fall and are difficult to recover for a long time, along with a series of bad news such as theft, fraud and illegal orders. prohibited by managers.

Investors who poured money into cryptocurrencies last year are now suffering huge losses, while an increasing number of crypto lending platforms, hedge funds and stablecoin issuers are mired in dire straits. . Many other platforms also struggled with cyber attacks that caused hundreds of millions of dollars in damage.
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