The CEO of Red Date Technology compared Bitcoin and other cryptocurrencies to a Ponzi scheme. However, the businessman believes that with proper regulation, stablecoins could become a means of payment.
Yifan He published an article in which he compared cryptocurrencies with financial pyramids. He mentioned the May collapse of the Terra project, when the LUNA crypto asset fell to almost zero in just a few days, and the UST token lost its peg to the dollar. At the same time, He criticized the X-to-earn (“go to earn”) model, calling it a phishing strategy with which companies collect data from people.
The CEO of Red Date Technology announced that he is not a fan of Bitcoin and other cryptocurrencies. In his opinion, all crypto assets are similar to a Ponzi scheme, it’s just that each has its own level of risk, depending on the market capitalization and the number of users. He added that he has never had a cryptocurrency wallet, has not bought cryptocurrencies and does not intend to buy them in the future. Even if digital assets become regulated by governments, this is unlikely to increase their value, He said.
The businessman believes that the authorities of El Salvador and the Central African Republic (CAR), who decided to legalize bitcoin, are in serious need of basic financial education. According to He, the leaders of these states put entire countries at risk, unless their original intentions were to defraud their own citizens. At the same time, He believes that a certain part of the cryptocurrency market could still succeed if it were under proper control of regulators. We are talking about stablecoins pegged to state currencies:
“USDC or USDT are not speculative assets, but currencies that can be used for payments. Once they are fully regulated, they will be fine.”
Red Date Technology has been involved in the development of the Chinese National Blockchain Service Network (BSN) project. BSN previously announced its readiness to add support for stablecoins in 2021. However, the idea was eventually abandoned due to China’s hostile attitude towards cryptocurrencies.
He mentioned recent statements by Microsoft co-founder Bill Gates, who believes that investing in cryptocurrencies is pointless. A similar position is held by legendary investor Warren Buffett. He considers it expedient to invest money only in industrial assets and real estate.
Source: Bits
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