China’s BSN Founder Not Fan of Bitcoin, Calls Crypto a Ponzi Scheme

Yifan He, the CEO of Blockchain-based Service Network (BSN), published an article on June 26 referring to cryptocurrencies as the “biggest Ponzi scheme in human history.” He is also the CEO of Red Date Technology, which happens to be one of the founding members of China’s blockchain infrastructure.

• The article was published in the state media wherein the founder mentioned Tesla chief Elon Musk’s tweets influencing Dogecoin’s price in 2021 while describing the market as an “old scam, new form.”
• The author also discussed the more recent TerraUSD (UST) epic fall from grace, as well as LUNA’s spiral down to a few cents, while trying to elucidate that the latter two were the combination of two types of Ponzi schemes – cash-based and equity-based.
• He also cited the examples of Microsoft founder Bill Gates and Berkshire Hathaway CEO Warren Buffett, both vastly successful and influential figures but have long believed the crypto story will not end well.
• It’s worth noting that this isn’t the first time a prominent figure has called Bitcoin and crypto to be a huge, long-running Ponzi scheme.
• The latest comments come amidst a market meltdown that prompted a fresh warning in China in an article published by the Economic Daily, which stated that Bitcoin’s value could be “heading to zero.”
• Following the rapid declines, Beijing has renewed efforts to discourage Chinese investors from all crypto-related activities.
• Despite continuing to maintain an anti-Bitcoin stance, China has been quite encouraging of blockchain technology.
• As a matter of fact, blockchain was first elevated to a national priority for China after President Xi Jinping’s 2019 speech, where he heralded that it was a crucial breakthrough in independent innovation of core technologies.
• Shortly after, China started developing a Blockchain-based Service Network (BSN), which is essentially a platform that aims to facilitate the deployment of blockchain technology for enterprises.
• As reported earlier, BSN was gearing up to launch its first major international service, the Spartan Network, in August this year.

Featured Image Courtesy of Medium