We all knew that there would be Bitcoin critics throughout traditional financial sectors. In fact, there have always been critics. However, Bitcoin is gaining so much momentum and market value that the haters are coming out of the woodwork; and in the immortal words of Biggie Smalls, “More money, more problems.”
David Gledhill is the Head of Group Technology and Operations and the Group Chief of Information Officer for DBS, a major Asian bank.
According to Gledhill, “We see Bitcoin as a bit of a Ponzi scheme.”
The words Ponzi Scheme are incredibly harsh and scary to the traditional investor. Traditional investors have been notoriously scared to trade crypto-currencies because of their volatile nature. Plus, they’re still downright confusing to some people.
It’s easy to fear what you don’t understand. Then, when a major banking institution calls what you don’t understand, “a Ponzi scheme;” (a terrifying hoax that you do understand), what you don’t understand becomes incredibly easy to dismiss as a scam.
They’ll be Having None of That
According to Gledhill, Bitcoin is, “incredibly expensive,” to transact, with hidden fees throughout its, “crypto-mechanisms.”
During the Singapore Fintech Festival, he made it clear that DBS had no interest in being a part of the crypto-currency, “game right now,” because it wouldn’t, “create a competitive advantage,” for the organization. He feels that Bitcoin will become extremely cheap because of, “how it will scale.”
Gledhill doesn’t feel that working with Bitcoin will do anything to bring in new customers, new deposits or to enhance DBS’ current strategies for wealth management. Gledhill states that now is the time to simply, “watch and learn,” what Bitcoin will do.
Gledhill says DBS plans to focus on traditional electronic transactions of government-backed fiat.
Of course, Gledhill isn’t the first pundit to take a shot at Bitcoin. Despite the fact that DBS has always been a big supporter of emerging technologies, (introducing a cloud-based system for its employees, powered by artificial intelligence), Southeast Asia’s biggest lender stands behind Gledhill in his views, and has no immediate plans to look further into crypto-currency.
Crypto-currency recently took a nosedive, falling almost $2,400 per coin. However, its market value has begun another steady, strong climb.
Matthew Roszak, Chairman and Co-Founder of Bloq, (a blockchain software company) defended Bitcoin. “When I hear comments like that, I think a lot of folks are having their Kodak moment, where maybe they don’t really understand the magnitude of this technology.”
Do you agree with Gledhill’s views or Roszak’s. Do you feel that Bitcoin is nothing more than a glamorized ponzi scheme or an integral part of the future of currency?
Images Courtesy of Flickr, Pixabay
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