According to Tendayi Kapfidze, chief economist at LendingTree, the Bitcoin is a pyramid scheme and has no real use.
While the Bitcoin is increasingly “recognized” by financial institutions – a recent Bank of America report calls it the best investment of the past decade – some economists still view the digital coin as vulgar fraud.
This is particularly the case of Tendayi Kapfidze, a great American financier who worked for major banks and currently serves as chief economist at LendingTree, the largest online loan market in the United States.
“It’s a pyramid scheme. You only earn money from people who come in after you. It has no real use in the world. They have been trying to create a utility for this for ten years now. It’s a solution to finding a problem and he still hasn’t found a problem to solve, ”he said in an interview with YahooFinance.
Kapfidze joins the club of Bitcoin detractors
Other financial personalities such as Warren Buffett, Nouriel Roubini, Ken Griffin, Bill Gates, Paul Krugman and Benoît Coeuré have also been hostile towards the digital token. The majority, however, recognize the opportunities offered by its underlying technology, the blockchain.
In 2019, the bitcoin price appreciated by more than 87%. A relative performance compared to the + 240% posted last June.
Today more regarded as a speculative asset rather than a scam, the Bitcoin is now offered on the menu of several large financial institutions such as ICE, through its subsidiary Bakkt, and Fidelity.
A 2019 survey by the latter revealed that 22% of American institutional investors had cryptocurrencies and that 40% were interested in investing in this new asset class within 5 years.