Bill Harris, former CEO of PayPal claimed that investors are “drinking the Kool-Aid” as bitcoin is a scam. He said that due to their volatility virtual currencies are neither a great store of value nor an effective means of payment.
Harris stated, “I absolutely believe that money should be digital, is becoming more digital, and will be completely digital but it doesn’t mean we need a new currency to record that.”
Although the former CEO of payment giant is hopeful for the future of virtual currencies as a whole yet, he believes that bitcoin is nothing more than a scam.
On Thursday, he told CNBC, “Everyone is drinking the Kool-Aid. I absolutely believe that money should be digital, is becoming more digital, and will be completely digital but it doesn’t mean we need a new currency to record that.”
He questioned the relation between usefulness and bitcoin’s value. Though bitcoin reached the mark of $20,000 in December 2017, it has not been able to push another boost currently trading around the $9,000 mark.
Harris added, “There’s no reason that a new currency should instantly have billions of dollars in value.” According to crypto supporters, bitcoin’s value is reasonable as its mining has a limitation. Satoshi Nakamoto’s, the founder of digital currencies, framework predicts that only 21 million bitcoins will ever exist. Meanwhile, Blockchain.info, reported that miners recognized the 17 millionth bitcoin this Thursday.
He said, “My autograph is scarce, I can promise that I will never autograph a piece of paper more than 21 million times, but it doesn’t make it valuable.” This week an article in Recode, published the thoughts of Harris, also the founder of Personal Capital Corporation on bitcoin. To him, bitcoin is a “colossal pump-and-dump scheme, the likes of which the world has never seen.”
However, Harris was bullish on the use of blockchain technology which basically became popular due to digital currencies. Harris added, “There’s the currency like bitcoin then there’s the technology, blockchain technology has terrific applications, including financial transactions but we don’t need a new currency to do it.”
Blockchain has been enjoying a positive response all around the world. Even the most rigid haters of digital currencies have advocated for blockchain and its usability in various industries.
In Similar news, China’s supreme audit institution, The National Audit, is trying to use blockchain technology to improve auditing functions in the vast country.
The official statement read, the “blockchain” technology’s encryption algorithm, timestamp, and data self-management [will] enable the data center to track and record every auditor’s data events and other activities that require data collection, identity management, and the creation of auditor data operations.”
It should also be noted that market experts are expecting bitcoin to surpass the $20,000mark by the end of this year. These speculations are coming amidst the new regulations launched by governments and financial authorities. If bitcoin turns out to be a scam investors will lose billions of dollars within a second.