Kenyan Insurance Director calls cryptocurrencies ponzi schemes, warns users it will “end in tears.”

Julius Kipngetic, CEO of Insurance Company Kenya, compared cryptocurrencies such as bitcoin-Ponzi schemes and urged his citizens” not to touch that.” Moreover, Kipngetich has already warned crypto-traders to be prepared for the consequences, as this always “ends in tears.”

Bitcoin as a medium of exchange
Interestingly, addressing attendees at the business seminar, Kipngetich acknowledges that bitcoin already meets one of the conditions for it to be seen as a currency. Said::

Currency represents two basic things; a tool of exchange and a tool of value accumulation. So every currency is average, I give you something to give.

Julius Kipngetich
Kipngetich’s view of cryptocurrencies seems to coincide with that of some central banks. For example, in its 2019 advisory on crypto assets, the Reserve Bank of South Africa (SARB) acknowledges that “crypto assets may be used for similar depreciation payments and that crypto assets may be used for investment purposes by their users.”

Value storage cryptocurrency
However, in terms of Bitcoin being a store of value, Kipngetich states that it cannot be considered a real store of value because it is not supported by governments. Under the executive branch, only governments have the right to issue money based on their position. Manager explained:

The government is a protector that regulates what value is provided. That’s why they release the currency because it represents the result…The central bank then presents the problem in its currency.

Therefore, compared to this standard, cryptocurrencies such as Bitcoin are useless or, as Kipngetich calls them, “hot air.”

Do you agree that Kipngetich refers to cryptocurrencies as Ponzi schemes? Let us know what you think in the comments below.

Finance, bitcoin Ponzi scheme, crypto assets, cryptocurrencies, exchange instrument, Reserve Bank of South Africa (SARB), store

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