Bank DBS calls Bitcoin a financial pyramid
In one of the largest banks in Asia, bitcoin is considered a pyramid scheme. David Gledhill, Chief Information Officer of DBS Bank, said this in a conversation with CNBC..
“We are looking at Bitcoin as a Ponzi scheme,” said Gledhill.
In his opinion, the fees “hidden in the crypto mechanism” of bitcoin are too high for DBS to consider cryptocurrency as an alternative financial instrument..
Despite this, Gledhill expects the digital payment system to scale over time. Only this will make the system, which has gotten out of control, more accessible and efficient..
DBS, or Development Bank of Singapore, manages S $ 482 billion in assets. One of the largest lenders in the region has clients of 200,000 banks and over 7 million individuals.
Certainly, Gledhill’s words will hardly surprise anyone. For example, JPMorgan CEO James Dimon constantly talks about the shortcomings of Bitcoin and even calls investors “dumb”.
There is also Dennis Hartman, another financier who speaks out about cryptocurrencies in an extremely negative way. Speaking to CNBC, he said that Bitcoin is a market for criminals and youth.
“How can you buy or sell a painting for Bitcoin if its price fluctuates by 20-30-40 percent within one week? This is nonsense, “he said..
Of course, the confident growth of the bitcoin rate this year did not leave these financiers indifferent. Cryptocurrency price has risen by more than 600%, reaching several key points in the process.
Bitcoin has faced a wave of sales in the past week, with which it has dropped more than $ 1200. However, the market quickly found a foothold, and trading in the BTC / USD pair returned to the $ 6800- $ 6900 level. Over the past day, the price of bitcoin has increased by 5%, and now for 1 BTC they give $ 6922. At the moment, the capitalization of the cryptocurrency exceeds $ 115 billion, and the trading volume over the past 24 hours is $ 3.3 billion..
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