BTC is inherently a Ponzi scheme – says one of the founders of virtual reality, Jaron Lanier

The American founder of the virtual reality industry, Jaron Lanier, stated that BTC is, by its very nature, a Ponzi scheme, as the first investors benefited the most from it.

During his speech in the podcast Lex Fridman, Lanier suggested that individuals who bought the asset earlier are much richer than late investors.

According to this scientist, the BTC chain from wealthy holders to retail investors correlates with gambling based on factors such as market volatility. He suggested that BTC, like gambling, is a large economy, but unproductive.

“It’s inherently a Ponzi scheme, because those who came earlier have more than those who came later. And the further you get in the chain, the more you are subject to gambling, where it is more and more random and more and more subject to strange network effects. “

Jaron Lanier: BTC is broken

Lanier added that although he himself has been promoting digital money for a long time, BTC unfortunately does not offer a solution and called it non-functional. He said that BTC is a reconstruction of the gold standard, which does not make economic sense.

During his speech, he further noted that the boundless use of BTC technology is a disaster for the digital money space and described it as a “crime against the atmosphere”.

On the other hand, he acknowledged and appreciated the existence of people, such as the co-founder of Ethereum Vitalik Buterin, who are trying to change this space.

“When BTC and blockchain came out, my heart sank a little because I thought: My God, we’re applying all these fantastic ideas and all these very carefully distributed security measures to re-establish the gold standard. It’s just so retro. It’s so broken. From an economic point of view, it is completely useless. “

According to him, BTC also does not show an opportunity to create economic growth, because it was built on the idea that the problem is government centralization.