Bitcoin is big scame, former PayPal Ceo says

Former PayPal CEO has slammed Bitcoin saying it is the biggest scam of all times. Bill Harris said that the so-called cryptocurrency has got no value and said it is a mere ‘pump-and-dump’ scheme.

“OK, I’ll say it: bitcoin is a scam,” Harris said in a recent guest post. Although he substantiated his comments by painting bitcoin as the biggest pump-and-dump scheme in history, the digital coin’s founder Satoshi Nakamoto’s anonymity and elusive nature speak against Harris’ assertions, as does the mainstreaming of virtual currencies the world is currently witnessing.

Knowing that his comments would rile many, Harris nonetheless pointed to certain fundamentals when defending his words, words that he issued after cautioning many repeatedly over time.

“I’m tired of saying, ‘Be careful, it’s speculative. Then, ‘Be careful, it’s gambling.’ Then, ‘Be careful, it’s a bubble.’”

It may be that since PayPal and others deal only in fiat currencies and represent the cutting edge of online payments of the old school, that Harris’ area of expertise is clouding his opinions. Indeed, bitcoin is a better way of doing things, at least in theory, and projects also exist that enable PayPal and Bitcoin to get along.

Ripping into the cryptocurrency, Harris continued by labeling it as a “colossal pump-and-dump scheme, the likes of which the world has never seen… the 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.” Although bitcoin continues a far more respectable climb above $9,000 this week, something of a poster child for the cryptocurrency arena whose overall market cap recently surged $100 billion to $425 billion overall, Harris sees nothing but woe ahead.

Writing in an article for Recode, the founder of Personal Capital Corp and former CEO of PayPal, Harris went on to explain why he dislikes bitcoin. Refuting all given reasons enthusiasts and promoters claim the coin has value, he also repudiated it’s core ability as a currency, pointing out that almost no one accepted bitcoin as payment in the world. Harris refuted all of the positive reasons enthusiasts and promoters forward in the coin’s defense. Labeling its supposed value as a classic case of Greater Fool Theory, he said that the coin’s volatility made it completely unsuitable as a store of value and that “Cryptocurrency is best-suited for one use: criminal activity.”

Harris made mention of WannaCry and Silk Road ransomware and their exploitation of the cryptocurrency arena.

Harris now joins the growing list of experts from the traditional financial community who are cautiously watching the excitement surrounding cryptocurencies with many terming it as a bubble about to burst. Jordan Belfort, the real-life Wolf of Wall Street also termed cryptocurrencies as “pump-and-dump” schemes.