Jean-Pierre Verster, founder of South African hedge fund Protea Capital Management, 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.
In remarks made during an interview, Verster appears to adopt a stance on blockchain technology similar to that of cryptocurrency opponents. It is to explain:
I think blockchain technology is a great technology. And you’ll find applications when it comes to opening ledgers – when it comes to transactions that you need to make sure they’re captured somewhere or recorded somewhere in a way that people can’t keep track of – tampering with those records. Because blockchain is awesome.
Although he points to foreign exchange restrictions and hyperinflation as some of the legitimate factors that contribute to the popularity of cryptocurrencies, Verster continues to attack the “implementation of blockchain in cryptocurrency.”
It also warns of an inevitable crash if all the people who wanted to get involved in currencies finally did so. Verster further explained:
So you’ve got these elements of a Ponzi scheme, which means that for a long period of time, prices go up, and they go up, and it seems like the value goes up, and then everything collapses. So I did not invest in cryptocurrency myself.
The latest anti-crypto comment by Verster – who also admits he is not a crypto bull – is a reiteration of his disdain for the kinds of investments that make him “dependent on what the other person thinks the asset is worth”.
Do you agree with what Verster said about cryptocurrencies? Tell us what you think in the comments section below.
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