Mark Mobius and clique are the latest to join the group of critics actively disapproving it. The latest news has him pouring scorn on the dramatic rise of the currency. According to them, Cryptocurrency is the greatest fraud in financial history.
Mark Mobius is an emerging markets funds manager. Mark, together with David Serra, founder of UK hedge fund Algebris Investment have rubbished off the bitcoin market as a Ponzi scheme and a hub for the propagation of criminal activity.
These comments come as the proponents of digital currency are actively trying to clean its negative image, especially the money laundering claims to a legitimate and trustable business.
Serra: Bitcoin Is The Biggest Scam On Earth
Serra was speaking to the financial news when he lambasted Bitcoin as the biggest scam on earth.
“It’s the biggest Ponzi scheme ever,” he adds. Serra continues his outpour arguing that, had the currency been labeled as an investment rather than a currency, it wouldn’t have passed the regulator’s hurdle.
According to Mr. Serra, the difference with his funds is the nature in which investment solicitation rules applied. And Bitcoin, being a currency, they applied differently; otherwise, he thinks Bitcoin currency would never exist. To him, the value of Bitcoin is when someone buys it beforehand; otherwise, it would be of no value.
Mobius: Who Is In Control?
On the other side was Mobius, the asset manager who continues with his rant. “Who is running it, who is in control?” he asks.
Mr. Mobius expressed that these were questions lingered in his head whenever the question of bitcoin came up. To him, unless these questions were addressed, he would still consider the form of currency a fraud.
Bitcoin was launched in 2009 though it was not immediately traded in any exchange. When it did, it didn’t top $1, at least not in 2010. In fact, the highest it got the same year was $0.39.
The currency has since gained increasing prominence. Perhaps the best month for investors was in December and 19th to be specific when the prices soared up at $19,343.
But the prominence hasn’t been without ups and downs. Today, the prices have gone down to a low of $8,250 as at press time which is less than half what was recorded late last year.
Critics have readily accused the currency saying it to be of no intrinsic value.
Martin Wheatley, former UK’s financial regulator argues that there is no rationale for why bitcoin is worth what it is today. He adds that he always thinks of the digital currency trade as a bubble waiting to explode and consume everyone in it.
Warren Buffet, on the other hand, thinks no different. He has also likened the trade to gambling rather than investment.
Bitcoin’s Strongest Advocate
However as bitcoin’s critics continue to condemn it, the currency has also had a few financial experts supporting. One such advocate is Nigel Green, the founder of deVere Group, a financial service organization.
Nigel criticizes Mr. Buffet and his business partner’s thinking and doesn’t see why the two don’t see the value of a digital currency in a digitized world.