Jim Yong Kim is the president of World Bank Group. He is also the top European Central Bank policymaker. It is safe to say that his comments will carry weight.
During an event in Washington, World Bank Group President Jim Yong Kim predicted a sTron (available on Binance)g relevance between cryptocurrencies and Ponzi schemes; He said: “In terms of using Bitcoin (available on Coinbase) or some of the cryptocurrencies, we are also looking at it, but I’m told the vast majority of cryptocurrencies are basically Ponzi schemes.” Despite his bearish calls, investors seem to still be cheering the lenient stance from U.S. regulators, and the bulls don’t want to lose the momentum they generated in the last two days.
So Bitcoin (available on Coinbase) (BTC) price continues to trade around $8,200 after hitting the three month low of $6,000 on Tuesday. It dipped to around $7,700 overnight amid investors profit taking.
World Bank Group President Compared Cryptocurrencies with Ponzi Schemes
Despite the fact that U.S. regulators had presented positive and negative opinions before the Senate Committee, cryptocurrencies still fail to impress the top-rated fund managers and central banks; they aren’t too optimistic about cryptocurrencies and their future potential.
Showing his concern about Bitcoin (available on Coinbase) and other cryptocurrencies being Ponzi schemes indicates Kim’s bearish stance. His remarks support the case of bears, who believe there is no underlying value for cryptocurrencies; they will ultimately crash to zero.