It has been hailed as an easy get-rich-quick scheme, but according to one financial expert, Bitcoin is the greatest scam in history. Bill Harris, founding CEO of Paypal, said the so-called cryptocurrency has ‘no value’, and claimed it is part of a huge ‘pump-and-dump’ scheme. Bitcoin targets ill-informed buyers ‘caught up in the spiral of greed’, according to Harris, bitcoin watch only fools to a huge shift of wealth from ordinary families to internet scammers. Harris’ claims follow similar warnings made last month by Bank of England governor Mark Carney who said Bitcoin showed the ‘classic hallmarks of a bubble’ and that only ‘fools’ are investing in it.
It has been hailed as an easy get-rich-quick scheme, but according to one financial expert, Bitcoin is the ‘greatest scam in history’. In an opinion piece for Recode, Harris wrote: ‘Bitcoin is a scam. In my opinion, it’s a colossal pump-and-dump scheme, the likes of which the world has never seen. In a pump-and-dump game, promoters ‘pump’ up the price of a security creating a speculative frenzy, then ‘dump’ some of their holdings at artificially high prices. And some cryptocurrencies are pure frauds. The losers are ill-informed buyers caught up in the spiral of greed.
The result is a massive transfer of wealth from ordinary families to internet promoters. One of its selling points is that it can be used to buy things anonymously, and cryptocurrencies are frequently used by criminals to buy drugs and guns. WHO IS FOUNDING PAYPAL CEO BILL HARRIS? Bill Harris was appointed CEO of X. The company merged with software firm Confinity three months later to form the online payments service Paypal, with Harris appointed CEO. Bill Harris was ousted from the CEO role just two months later in April 2000, with Musk taking over the role while Peter Thiel was appointed Chairman.
Harris has since founded digital financial firm Personal Capital, based in San Francisco, California. But Harris, founder of California-based financial firm Personal Capital, said the idea that a Bitcoin has value is wrong. He wrote: ‘It helps to understand that a bitcoin has no value at all. None of these claims are true. For the vast majority of uses, bitcoin has no role. Dollars, pounds, euros, yen and renminbi are better means of payment, stores of value and things in themselves. WHAT IS BITCOIN AND HOW DOES IT WORK?
They are stored in what are called virtual wallets known as blockchains which keep track of your money. One of the selling points is that it can be used to buy things anonymously. Every time a new maths problem is solved a fresh Bitcoin is produced. Some people create powerful computers for the sole purpose of creating Bitcoins. And all transactions are recorded publicly so it is very hard to counterfeit. 17th Century and the dot com boom of the early 2000s to be the biggest bubble in history.