Ethereum ($ETH) and Other Altcoins Are a 'Pyramid Scheme', Says Max Keiser
Popular cryptocurrency strategist and former Wall Street trader Max Keiser has revealed he believes that altcoins and Ethereum ($ETH), in particular, are “just outright scams” that should eventually stop existing.
Keiser, who speaking to Kitco News’ Michelle Makori said these altcoins are a “pyramid scheme,” is a well-known bitcoin bull. During his interview with Makori, he said any altcoin other than BTC isn’t sustainable and doesn’t have the characteristics of sound money as BTC does.
Bitcoin, he said, has scarcity, decentralization, anti-fragility, and resistance to being “pumped and dumped” through a pre-mine.
Keiser added that people are “waking up to the fact” that these altcoins are “just outright scams” and that there “hasn’t been any useful development on any of these altcoins at all that hasn’t been shown to be an utter scam.”
The former Wall Street trader said that decentralized finance projects “routinely blow up” as protocols within the DeFi space “are living in a grey area that’s outside of all regulations.” Bitcoin, Keiser added, is the best sound money solution for mankind.
[Bitcoin] solves a problem that humans have had for hundreds of thousands of years and that is a need to exchange value for value over space and time
According to Keiser gold is good to exchange value over time but “very bad to do so over space” as it’s hard to move physical gold around to exchange value. Fiat currency, on the other hand, is easy to move around but loses its value over time.
Keiser added that he sees Bitcoin’s current state of adoption as similar to the type of adoption the internet had in its early days and believes eventually BTC’s usage will be “ubiquitous.” Per his words, “software runs the world” and software will transform the money industry in the near future, as it now is “mired in 100-year old, 200-year old technology.”
Keiser used to hold gold but moved his holding to BTC. The former Wall Street trader has affirmed numerous times he believes the price of bitcoin will hit $220,000 later this year as the network’s hashrate has hit a new high.
The views and opinions expressed by the author, or any people mentioned in this article, are for informational purposes only, and they do not constitute financial, investment, or other advice. Investing in or trading cryptoassets comes with a risk of financial loss.
Featured image via Pixabay
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