Cryptocurrencies have ‘no intrinsic value’, says South African hedge fund guru – Blockchain Bitcoin News

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Jean-Pierre Verster, the founder of a South African hedge fund Protea Capital Management, said he does not believe there is “intrinsic value” in cryptocurrencies. He insists that cryptocurrencies have “elements of a Ponzi scheme” and for this reason he has not invested in them.

A “wonderful technology”

In comments made during an interview, however, Verster appears to take a position on blockchain technology similar to that of opponents of cryptocurrency. He explained:

I think blockchain technology is wonderful technology. And will find applications when it comes to having open ledgers – when it comes to transactions that you need to make sure they’re captured somewhere or saved somewhere in a way people can’t. not after the fact – playing around with these recordings. For this blockchain, it’s great.

Although he points to currency restrictions and hyperinflation as some of the legitimate factors contributing to the popularity of cryptocurrencies, Verster still attacks “the application of blockchain in cryptocurrency.”

Inevitable crash

He also warns of an inevitable crash if everyone who wanted to get involved in forex eventually did. Verster explained further:

So it has these elements of a Ponzi scheme, which means that for a long period of time the prices go up, up, and it looks like the value goes up, and then it all crumbles. So I didn’t invest in crypto myself.

These latest anti-crypto comments from Verster – who also admits he’s not a crypto bull – are a reiteration of his disdain for the types of investments that make him “dependent on what the other person thinks he is. ‘asset is “.

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

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