Called Bitcoin a “Pyramid Scheme”
Murat Uysal, an economist chosen by Turkish President Recep Tayyip Erdogan as a member of the board of his country’s central bank, recently called Bitcoin a “pyramid scheme.” He stated that it is created with the aim of enriching those who created the system quickly, and poses a potential risk to investors. He warned that it is highly volatile and could lead to hefty losses, saying, “It does not constitute a safe and sound investment vehicle. Investment in such instruments is at the investors own risk.” Uysal also expressed that the rapid increase in the value of Bitcoin could create bubble-like conditions in the market.
Uysal’s statements echo those of many other central bankers across the world who have warned that the market for cryptocurrency is highly unregulated and risky. They have expressed concern over the potential for fraud and manipulation, and the lack of consumer protection for investors.
While there are some potential advantages to investing in bitcoin such as the fact that it is decentralized and accessible to anyone with an internet connection, the risks associated with investing in it are very real. Additionally, its extreme volatility and the lack of government or central bank oversight over its trading means that investors should be careful when considering investing in cryptocurrencies.