Brazilian central bank governor Ilan Goldfjan has called cryptocurrencies a ponzi scheme. He however said there was a need to distinguish the currencies from the underlying blockchain technology.

the bitcoin is a financial asset with no ballast that people buy because they believe it will appreciate. that is a typical bubble or pyramid.

Goldfjan joins several influential figures in the financial space who have knocked the digital currencies. Jamie Dimon JP Morgan CEO has repeatedly called bitcoin a fraud and had threatened to sack any staff dealing in the currency, calling it stupid. Hedge fund manager, Ray Dalio has equally expressed scepticism about the long term viability of cryptocurrencies.

Why Goldfjan may have such opinions.

A ponzi scheme is one that promises investors fantastic returns without any form of risk. Ponzi schemes rely on a constant flow of new investors, in order to pay existing investors. When this stop, the scheme crashes. Goldfan’s sentiments could be understood in light of the astronomical returns bitcoin and some other cyrptocurrencies have made year to date. A significant proportion of investors are purchasing them in expectation of even higher price appreciation. Utility for the coins has been slow in coming. Initial Coin Offerings (ICOs) have raised billions of dollars this year, with many of them being unproven concepts.

Operators of various Ponzi schmes in Nigeria have also begun processing their payments using bitcoin, fuelling concern by regulators that cryptocurrencies could be used for illegal activities.

Implications of his comments

Brazil is currently legislating on the use of cryptocurrencies, and the governor’s comments could lead to a strict regulatory regime. Emerging markets across the world have taken varying approaches to cryptocurrencies. While Russia and India have embraced them, China has banned its citizens from transacting in them while it draws up regulations.

https://nairametrics.com/this-central-bank-governor-calls-cryptocurrencies-a-ponzi-scheme/

I thought our own CBN Governor was the only clueless Central head we have in the world? Finally, someone with no brain. If this report has credibility, Our own CBN is 100% better.

Where is this coming from? Brazil or all places, mother of financial crises.

Brazil is currently experiencing a fiscal crisis and an increasing budget deficit which, according to Bloomberg, has been "the largest-ever primary budget gap ... as a two-year economic recession sapped tax collection while expenses grew further. The government deficit reached 5.8 billion reais (U$1.7 billion) during the first three months of 2016, the widest reported since December 2001.

Where was Ilan Goldfjan?

Brazil nor Ilan Goldfjan has no credibility to offer any tangible opinion financial or economic matters.

Its like seeking family planing advice from a man who have 12 children.

unite4real:
Brazilian central bank governor Ilan Goldfjan has called cryptocurrencies a ponzi scheme. He however said there was a need to distinguish the currencies from the underlying blockchain technology.

the bitcoin is a financial asset with no ballast that people buy because they believe it will appreciate. that is a typical bubble or pyramid.

Goldfjan joins several influential figures in the financial space who have knocked the digital currencies. Jamie Dimon JP Morgan CEO has repeatedly called bitcoin a fraud and had threatened to sack any staff dealing in the currency, calling it stupid. Hedge fund manager, Ray Dalio has equally expressed scepticism about the long term viability of cryptocurrencies.

Why Goldfjan may have such opinions.

A ponzi scheme is one that promises investors fantastic returns without any form of risk. Ponzi schemes rely on a constant flow of new investors, in order to pay existing investors. When this stop, the scheme crashes. Goldfan’s sentiments could be understood in light of the astronomical returns bitcoin and some other cyrptocurrencies have made year to date. A significant proportion of investors are purchasing them in expectation of even higher price appreciation. Utility for the coins has been slow in coming. Initial Coin Offerings (ICOs) have raised billions of dollars this year, with many of them being unproven concepts.

Operators of various Ponzi schmes in Nigeria have also begun processing their payments using bitcoin, fuelling concern by regulators that cryptocurrencies could be used for illegal activities.

Implications of his comments

Brazil is currently legislating on the use of cryptocurrencies, and the governor’s comments could lead to a strict regulatory regime. Emerging markets across the world have taken varying approaches to cryptocurrencies. While Russia and India have embraced them, China has banned its citizens from transacting in them while it draws up regulations.

https://nairametrics.com/this-central-bank-governor-calls-cryptocurrencies-a-ponzi-scheme/

This man is a pure confused clan. Digital money is here to stay 4 good

cryptocurrency invesments is the only way out.,,,.check my signature nd join the group

Okay.

Need a balanced view from someone with credibility?
Read this one

https://www.cryptocoinsnews.com/bitcoin-no-fraud-real-concerns-royal-bank-canada-ceo/