2019 has been a positive year for cryptocurrency owners and investors, but economists are still not convinced of the benefit of digital currencies and advise against investing in these assets. As for the world’s first digital currency, Bitcoin, it must be seen as a “pyramid scheme” said analysts.
“Bitcoin is a pyramid scheme, where you can only make more money by relying on those who invest after you,” said Tendayi Kapfidze, chief economist at US credit broker Lending Tree.
The price of Bitcoin, which is considered the most popular currency, rose by more than 85 percent in 2019, which represents one of the best returns of financial assets. Nevertheless, experts consider that the mere fluctuation of the Bitcoin price is the reason why investing in this asset is considered dangerous.
“It has no real utility in the world. We have been trying to find the benefit of using Bitcoin for ten years.” The economist at Lending Tree says they have always been trying to find solutions to this problem for a long time but to no avail.
Experts generally believe that investments in encrypted assets are considered “purely speculative.”