The chairman of China’s Blockchain Service Network (BSN) Development Alliance Shan Zhiguang, and his colleague, insisted in a recently published op-ed that virtual currency is “undoubtedly the largest Ponzi scheme in human history.” However, they have said the “value of blockchain technology should not be ignored because of virtual currency.”
Opinion piece claims 90% of the 100 richest people have moody virtual currency
Chinese Blockchain Service Network (BSN) Development Alliance Chairman Shan Zhiguang and Executive Director He Yifan said virtual currency is “undoubtedly the biggest Ponzi scheme in human history.” . They also claimed that this Ponzi scheme has since morphed into one that “isn’t just about the money anymore”.
In a recent opinion piece published by the People Daily Online newspaper, the BSN chairman and his colleague begin their attack on virtual currency and bitcoin by pointing to the fact it has been “bad-mouthed” by at least 90% of the 100 richest people in the world. The duo also gives the reasons which compelled them to similarly view BTC or virtual currency negatively. They wrote:
This type of Ponzi scheme can be classified as “equity-type”, and it has three main characteristics: first, it is based on actions that can be denominated; second, equity can be traded and put into circulation; finally, and most importantly, this equity is not associated with any assets, productive labor or social value, but is entirely fictitious.
According to the duo, the equity in virtual currency equity Ponzi schemes is not linked to any real asset or labor hence the risk is “close to infinity.” When looking at the characteristics of virtual currency, Zhiguang and Yifan said it is apparent that these are consistent with those of a so-called equity Ponzi scheme.
Blockchain should not be ignored
Elsewhere in the article, the BSN chairman and Yifan use the example of dogecoin to show how a single influential individual can manipulate or control the value of a virtual currency.
“So it’s easy to understand that Musk can turn his hands on dogecoin as a cloud, and turn his hands into a rain. Just sending a tweet can make the price of virtual currency flat,” the duo claimed.
Despite their stance on virtual currency, Zhiguang and Yifan insisted in their opinion piece that blockchain technology, which anchors most cryptocurrencies, “should not be ignored.” The duo, however, suggested that regulation technology is still needed to ensure that blockchain plays “a huge role in various application areas”.
