Jean-Pierre Verster, the founder of a South African hedge fund Protea Capital Management, has said he does not believe there is “intrinsic value” in cryptocurrencies. He insists that cryptocurrencies have “elements of a Ponzi scheme” and for that reason, he has not invested in them.
A ‘Wonderful Technology’
In remarks made during an interview, Verster however appears to adopt a stance on blockchain technology that is similar to that of cryptocurrency opponents. He explained:
I think the technology of blockchain is a wonderful technology. And will find applications when it comes to having open ledgers – when it comes to transactions that you need to make sure are captured somewhere or recorded somewhere in a way that people can’t after the facts – fiddle with those recordings. For that blockchain is great.
Although he points to foreign exchange restrictions and hyperinflation as some of the legitimate factors that contribute to the popularity of cryptocurrencies, Verster still attacks “the application of blockchain into cryptocurrency.”
He also warns of an inevitable crash should all the people who wanted to get involved in the currencies finally do so. Verster explained further:
So it has got these elements of a Ponzi scheme, which means that for a long period of time, prices go up, go up, and it looks like value increases, and then it all comes crashing down. So I have not invested in crypto myself.
These latest anti-crypto comments by Verster — who also confesses that he is no crypto bull — are a reiteration of his disdain for types of investments that make him “dependant on what the other person thinks the asset is worth.”
Do you agree with what Verster has said about cryptocurrencies? Tell us what you think in the comments section below.
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