Kenyan Insurance Executive Says Crypto Are Ponzi Schemes

East Africa based Kenyan Insurance Executive Calls Cryptocurrencies as Ponzi  Schemes. And also they Warned the cryptocurrency users to be careful about crypto & said This Will ‘End in Tears’.

Julius Kipng’etich who is executive of Kenyan Insurance Company criticized Cryptocurrencies. 

Julius stated that 

“Currency represents two primary things; it is a medium of exchange and a store of value. So any currency is medium, I give you so that you give something”

Through this statement, he claimed that Bitcoin meets one of the requirements of currency, so it can be considered as a medium of currency. But through this statement he clearly indicated that Crypto assets ( altcoins) can’t be used as currency. 

Julius’ views are much consistent with the ” consultation paper on crypto assets 2019 by the South African Reserve Bank”.

According to the SARB consultation paper, crypto assets can be considered as Investment assets but can’t be treated as a medium of exchange of funds. And these are highly risky. But crypto assets can be used as a medium of exchange of Money only for crypto users. 

According to Kipng’etich, Crypto assets can’t be considered as “store of value”. Even if it is Bitcoin or any crypto, as it is not backed by any government, so can’t be considered as a store of value. And also these can’t be considered as Currency because they are not issued by any government. 

“Government is the custodian to regulate how much value has been given. That’s why they issue currency because it represents an output…Then the central bank represents that output in currency”

So, if we consider the standards of the currency then crypto assets including Bitcoin became valueless.

Read also: Singapore’s crypto services unicorn Matrixport closes c-round fundraise