A Kenyan insurance coverage govt, Julius Kipng’etich has in contrast cryptocurrencies like bitcoin to Ponzi schemes and has urged his countrymen not “contact this.” As well as, Kipng’etich warned these already concerned in crypto buying and selling to be ready for the implications as this at all times “ends in tears.”
Bitcoin as a Medium of Alternate
Apparently, when addressing attendees of a enterprise seminar, Kipng’etich does acknowledge that bitcoin already meets one of many circumstances for it to be handled as foreign money. He stated:
Forex represents two major issues; it’s a medium of trade and a retailer of worth. So any foreign money is medium, I provide you with so that you just give one thing.
Kipng’etich’s view of cryptocurrencies seems to be in keeping with that of some central banks. For example, in its 2019 session paper on crypto belongings, the South African Reserve Financial institution (SARB) equally acknowledges that “crypto-assets have the power for use for funds (trade of such worth) and for funding functions by crypto-asset customers.”
Cryptocurrency Not a Retailer of Worth
Nonetheless, by way of bitcoin being a retailer of worth, Kipng’etich argues that since this isn’t backed by governments it, due to this fact, can’t be seen as a real retailer of worth. In keeping with the chief, solely governments are mandated to problem foreign money by advantage of their positions. The manager defined:
Authorities is the custodian to manage how a lot worth has been given. That’s why they problem foreign money as a result of it represents an output…Then the central financial institution represents that output in foreign money.
Due to this fact, when measured in opposition to this normal, cryptocurrencies like bitcoin are worthless or “scorching air” as Kipng’etich places it.
Do you agree with Kipng’etich’s characterization of cryptocurrencies as Ponzi schemes? Inform us what you suppose within the feedback part under.
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