{"id":10347,"date":"2021-08-02T05:54:14","date_gmt":"2021-08-02T05:54:14","guid":{"rendered":"https:\/\/www.buyucoin.com\/crypto-labs\/kenyan-insurance-executive-calls-cryptocurrencies-ponzi-schemes-warns-users-this-will-end-in-tears\/"},"modified":"2021-08-02T05:54:14","modified_gmt":"2021-08-02T05:54:14","slug":"kenyan-insurance-executive-calls-cryptocurrencies-ponzi-schemes-warns-users-this-will-end-in-tears","status":"publish","type":"post","link":"https:\/\/www.buyucoin.com\/crypto-labs\/kenyan-insurance-executive-calls-cryptocurrencies-ponzi-schemes-warns-users-this-will-end-in-tears\/","title":{"rendered":"Kenyan Insurance Executive Calls Cryptocurrencies Ponzi Schemes, Warns Users This Will \u2018End in Tears\u2019"},"content":{"rendered":"

A Kenyan insurance executive, Julius Kipng\u2019etich has compared cryptocurrencies like bitcoin to Ponzi schemes and has urged his countrymen not \u201ctouch this.\u201d In addition, Kipng\u2019etich warned those already involved in crypto trading to be prepared for the consequences as this always \u201cends in tears.\u201d<\/strong><\/p>\n

Bitcoin as a Medium of Exchange<\/h2>\n

Interestingly, when addressing<\/a> attendees of a business seminar, Kipng\u2019etich does acknowledge that bitcoin already meets one of the conditions for it to be treated as currency. He said:<\/p>\n

Currency represents two primary things; it is a medium of exchange and a store of value. So any currency is medium, I give you so that you give something.<\/p>\n

Julius Kipng\u2019etich.<\/p>\n

Kipng\u2019etich\u2019s view of cryptocurrencies appears to be consistent with that of some central banks. For instance, in its 2019 consultation paper<\/a> on crypto assets, the South African Reserve Bank (SARB) similarly acknowledges that \u201ccrypto-assets have the ability to be used for payments (exchange of such value) and for investment purposes by crypto-asset users.\u201d<\/p>\n

<\/p>\n

Cryptocurrency Not a Store of Value<\/h2>\n

However, in terms of bitcoin being a store of value, Kipng\u2019etich argues that since this is not backed by governments it, therefore, cannot be seen as a true store of value. According to the executive, only governments are mandated to issue currency by virtue of their positions. The executive explained:<\/p>\n

Government is the custodian to regulate how much value has been given. That\u2019s why they issue currency because it represents an output\u2026Then the central bank represents that output in currency.<\/p>\n

Therefore, when measured against this standard, cryptocurrencies like bitcoin are valueless or \u201chot air\u201d as Kipng\u2019etich puts it.<\/p>\n

Do you agree with Kipng\u2019etich\u2019s characterization of cryptocurrencies as Ponzi schemes? Tell us what you think in the comments section below. <\/strong><\/em><\/p>\n

Bitcoin News
\nFinance, Bitcoin Ponzi scheme, crypto assets, Cryptocurrencies, medium of exchange, South African Reserve Bank (SARB), store of value<\/p>\n","protected":false},"excerpt":{"rendered":"

A Kenyan insurance executive, Julius Kipng\u2019etich has compared cryptocurrencies like bitcoin to Ponzi schemes and has urged his countrymen not \u201ctouch this.\u201d In addition, Kipng\u2019etich warned those already involved in crypto trading to be prepared for the consequences as this always \u201cends in tears.\u201d Bitcoin as a Medium of Exchange Interestingly, when addressing attendees of…<\/p>\n","protected":false},"author":0,"featured_media":10348,"comment_status":"","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[53,3],"tags":[],"class_list":["post-10347","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-blockchain-news","category-coin-news"],"_links":{"self":[{"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/posts\/10347"}],"collection":[{"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/comments?post=10347"}],"version-history":[{"count":0,"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/posts\/10347\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/media\/10348"}],"wp:attachment":[{"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/media?parent=10347"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/categories?post=10347"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/tags?post=10347"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}