Asia Banking Giant Labels Bitcoin a ‘Ponzi Scheme’

[bitcoinveda]

One of Asia’s most prominent banking institutions has called bitcoin a ponzi scheme, signaling continued resistance to one of the most groundbreaking developments in recent history. “We see bitcoin as a bit of a ponzi scheme,” David Gledhill, chief information officer at DBS, told CNBC on Wednesday.

In his view, entering the bitcoin space doesn’t make much sense for DBS at this stage in the game. In a recent interview with CNBC, Gartman said bitcoin is a market for criminals and millennials.

“How can you buy or sell a painting using bitcoin, when the change in volatility is 20-30-40 percent in the course of a week?. Naturally, bitcoin’s dramatic appreciation has caught many sensible market participants by surprise.

Bitcoin faced an extreme selloff last week as prices shed more than $1,200. Blockchain alternative Bitcoin Cash (BCH) also gained ground on Wednesday, rising 3.5% to $1,322.

https://hacked.com/asia-banking-giant-labels-bitcoin-ponzi-scheme/

[junoreactor]

One of Asia’s most prominent banking institutions has called bitcoin a ponzi scheme, signaling continued resistance to one of the most groundbreaking developments in recent history. “We see bitcoin as a bit of a ponzi scheme,” David Gledhill, chief information officer at DBS, told CNBC on Wednesday.

In his view, entering the bitcoin space doesn’t make much sense for DBS at this stage in the game. In a recent interview with CNBC, Gartman said bitcoin is a market for criminals and millennials.

“How can you buy or sell a painting using bitcoin, when the change in volatility is 20-30-40 percent in the course of a week?. Naturally, bitcoin’s dramatic appreciation has caught many sensible market participants by surprise.

Bitcoin faced an extreme selloff last week as prices shed more than $1,200. Blockchain alternative Bitcoin Cash (BCH) also gained ground on Wednesday, rising 3.5% to $1,322.

https://hacked.com/asia-banking-giant-labels-bitcoin-ponzi-scheme/

Well, about the price, he is right, Bitcoin is still young and too volatile. But still, you can very well use Bitcoin as a simple intermediary (that way you do not need to care about the price), even if I believe the big majority of Bitcoin holders do not use it this way.

Anyway, still young currency which needs a more stable price in the future to be more adopted, that's for sure.
Ponzi scheme? Hard to tell... but I don't think so, Bitcoin is a real asset IMO.  

[Opquar]

Lol'd @ millenials. Millenials will inherit the future, dummy. He might as well have said that bitcoin is the future.

[soham]

This kind of statements are expected from bankers around the world. It started with JMP chief Jamie and now DBS chief joined the league. The have already started seeing bitcoin as a big threat to their business because banking runs on the idea of Centralization and bitcoin is completely against that idea. Also with $110 billion not reaching to the banking channel, is another area of concern for them. So these are expected and we will see such comments coming from bankers in the coming days as well.

However, I see that the market didn't really react on what Gartman said. There was no impact on the price of bitcoin. I believe market has learned to ignore such statements by the big bankers for good. 

[MJunioR]

You have to expect those reactions from bankers, especially from Asia, and the thing is while he have some valid points, he's to closed to see some BTC advantages.

[Passive Coin]

Seems this bankster do not understand how ponzi works.
In few words, you "invest" xxx amount of money into ponzi scheme, and ponzi admins promise you to return your money together with "high yeld" interest (usually in the predetermined time frame). Next "investor's" money "invested" in ponzi are used to pay back the early-birds, until the whole scheme collapse.

Bitcoin do not promise any fixed return in %%%, nor any dividends, nor promise any ROI, nor promise any price go up.
It's free market. If Bitcoin is ponzi, then every market traded on Asians exchanges are ponzi, as well. (including gold market).
Amen!.

[Scorpion]

Well then they simply fail to understand what the blockchain provides, a secured network to verify all transactions and participants, a immutable open ledger that is forever proven, this all gives immense store value, just because the price goes up everytime the demands makes it go up doesn’t make it a ponzi.

[junoreactor]

Well then they simply fail to understand what the blockchain provides, a secured network to verify all transactions and participants, a immutable open ledger that is forever proven, this all gives immense store value, just because the price goes up everytime the demands makes it go up doesn’t make it a ponzi.

Blockchain and Bitcoin are two different things though, blockchain obviously still very dependent on Bitcoin but in the future, who knows...thats why I am expecting (hoping) for big improvements on Bitcoin before it is too late.