Shan Zhiguang (chairman of the Chinese Blockchain Service Network Development Alliance) and He Yifan (executive director) claimed that virtual currency is ‘undoubtedly’ the most sophisticated Ponzi scheme in history. The Ponzi scheme is now ‘not about cash’, according to them.

The BSN chairman and his colleague start their attack on bitcoin and virtual currency in a recent opinion article published at People Daily Online newspaper. They point out that it has been ‘badmouthed’ by at most 90% of the 100 wealthiest people in the world. They also discuss the reasons they came to view Bitcoin and virtual currency negatively. They wrote:

This Ponzi scheme is classified as an “equity-type” and has three key characteristics. First, it can be denominated in equity; second, it can be traded and circulated; and finally, it cannot be Associated with any assets, productive labour, social value, or other resources. It is completely fictional.

The duo claims that the equity in virtual currency equity Ponzi scheme is not linked with any labor or real assets, so the risk is “close to infinity.” Zhiguang said that the characteristics of virtual currency are similar to those of an equity Ponzi scheme. Yifan also stated that they were consistent.

Blockchain must not be ignored

The article also includes Yifan and the BSN chairman, who use the example dogecoin as an example to illustrate how one person can control or manipulate the value of virtual currencies.

“So it’s clear that Musk can make dogecoin a cloud and turn it into rain. The duo claimed that a simple tweet could make virtual currency’s price flat.

Zhiguang, Yifan and others argued that virtual currency should not be considered. However, they insisted in an opinion piece that blockchain technology is important because it anchors many cryptocurrencies. However, the duo suggested that regulation technology was still necessary to ensure the blockchain’s’major role in different application fields.