#Bitcoin:$8k BTC Sinking as PayPal CEO Describes it as a ‘pump-and-dump’ Scheme
Bitcoin, shocks it’s traders as it drops overnight loosing about $880 after hitting the highest point this week.
The hope of the number one cryptocurrency surging to $10,000 has crashed and one of the founder of PayPal described the technology as, “a colossal pump-and-dump scheme, the likes of which the world has never seen.”
Currently Bitcoin is priced at $8,851 with Ethereum down at $629, and XRP at $0.81.
One of the founding CEO of PayPal, Bill Harris, has come out to criticise cryptocurrencies, describing it as “scam”.
“In my opinion, it’s a colossal pump-and-dump scheme, the likes of which the world has never seen.In a pump-and-dump game, promoters ‘pump’ up the price of a security creating a speculative frenzy, then ‘dump’ some of their holdings at artificially high prices.And some cryptocurrencies are pure frauds. Ernst & Young estimates that 10 percent of the money raised for initial coin offerings has been stolen.”
Mr Harris further said;
“It helps to understand that a bitcoin has no value at all.losers are ill-informed buyers caught up in the spiral of greed.The result is a massive transfer of wealth from ordinary families to internet promoters.”
While addressing the issue with Express.uk, the CEO and founder of Luno, Marcus Swanepoel, said;
“To answer this we can also open out to a wider common question around whether Bitcoin (or similar) will ever become a currency/challenge the banking system. This is the biggest misunderstanding in the market. While it doesn’t behave like a currency to a large extent right now, it’s all just a means to an end. The more people buy Bitcoin because they think the value will go up, the more people are essentially connected to this new financial system, making the system more valuable and hence paving the way for broader transnational adoption (you can think of it as buying shares in Visa Inc and then being able to use those shares to also transact on a day-to-day basis). It also massively speeds up the adoption process and drives network effects. It’s moving fast now and large institutions will only speed this up but the industry is not reliant on this money.In a pump-and-dump game, promoters ‘pump’ up the price of a security creating a speculative frenzy, then ‘dump’ some of their holdings at artificially high prices.”
Reacting to the new price, the former partner at private equity firm KKR, John Pfeffer, said;
“Bitcoin is the first viable candidate to replace gold the world has ever seen.So if Bitcoin becomes the dominant non-sovereign store of value, it could be the new gold, or new reserve currency.”