Robert McCauley, Oxford University scholar on Faculty of History, believes that the biggest cryptocurrency in terms of capitalization, BTC, is worse than financial pyramid.
Oxford University scholar describes BTC as a Ponzi scheme
McCauley believes that there is no point to compare BTC with the Ponzi scheme or the financial pyramid, because they differ fundamentally in the way they generate revenue. The members of the investment scheme receive a dividend by attracting financial assets from new entrants, and BTC owners can only make money if they sell their coins.
Robert predicts the collapse of stablecoins due to a lack of effective regulatory measures and a lack of transparency in the cryptocurrency sector. In this case, the entire digital ecosystem will fail and the BTC course will collapse. In this regard, the scientist described BTC as a useless asset that does not guarantee any profit in the long run.
According to McCauley, BTC is worse than any Pyramid game for two reasons:
- Coin mining requires a huge amount of electricity;
- Investors who have suffered a loss cannot sue the anonymous coin maker, known under the pseudonym Satoshi Nakamoto.
Eswar Prasad, chief professor at Cornell University, is also skeptical of BTC. He recently said that BTC “will not last long”. It predicts a sad end to crunching due to the low efficiency of the PoW-based blockchain.
- 1% of addresses control almost a third of all BTCs in circulation (source: National Bureau of Economic Research);
- just over 2% of anonymous accounts on various blockchains control about 95% of digital assets. (source: Bloomberg, Flipside Crypto).