South African hedge fund guru says cryptocurrency has ‘no underlying value’ – Blockchain Bitcoin News

Jean-Pierre Worster, founder of South African hedge fund Protea Capital Management, says he does not believe cryptocurrency has “internal value”. He asserted that his cryptocurrency had “elements of the Ponzi scheme” and that was why he had not invested in it.

A ‘wonderful technology’

In a comment made during an interview, Worstar, however, took a position on blockchain technology as opposed to cryptocurrency opponents. He explained:

I think blockchain technology is an excellent technology. And having an open ledger will find apps – when it comes to transactions that you need to make sure is captured somewhere or recorded somewhere that people can’t do after the truth – that resonates with those recordings. Great for that blockchain.

Although he cites foreign exchange restrictions and hyperinflation as some of the legitimate reasons that contribute to the popularity of cryptocurrencies, Verster attacks the “application of blockchain to cryptocurrencies.”

Inevitable crash

He warns of an inevitable crash that all people who want to get involved in the currency should eventually do so. Worster further explained:

So it got these elements of a Ponzi scheme, which means that for a long time, the price goes up, goes up, and seems to go up, and then it all breaks down. So I didn’t invest in crypto myself.

These latest anti-crypto comments from Verster – who admits he is not a crypto bull – reiterate his hatred for the kind of investment that makes him “dependent on what other people think is worth the property.”

Do you agree with what Worster said about cryptocurrency? Let us know what you think in the comments section below.

Image credit: Shutterstock, Pixabay, WikiCommons

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