A Kenyan insurance coverage government, Julius Kipng’etich has in contrast cryptocurrencies like bitcoin to Ponzi schemes and has urged his countrymen not “contact this.” As well as, Kipng’etich warned these already concerned in crypto buying and selling to be ready for the implications as this all the time “ends in tears.”
Bitcoin as a Medium of Trade
Apparently, when addressing attendees of a enterprise seminar, Kipng’etich does acknowledge that bitcoin already meets one of many situations for it to be handled as foreign money. He stated:
Foreign money represents two main issues; it’s a medium of trade and a retailer of worth. So any foreign money is medium, I offer you so that you just give one thing.
Kipng’etich’s view of cryptocurrencies seems to be per that of some central banks. As an example, in its 2019 session paper on crypto belongings, the South African Reserve Financial institution (SARB) equally acknowledges that “crypto-assets have the flexibility for use for funds (trade of such worth) and for funding functions by crypto-asset customers.”
Cryptocurrency Not a Retailer of Worth
Nevertheless, when it comes to bitcoin being a retailer of worth, Kipng’etich argues that since this isn’t backed by governments it, subsequently, can’t be seen as a real retailer of worth. In line with the manager, solely governments are mandated to concern foreign money by advantage of their positions. The manager defined:
Authorities is the custodian to manage how a lot worth has been given. That’s why they concern foreign money as a result of it represents an output…Then the central financial institution represents that output in foreign money.
Subsequently, when measured towards this commonplace, cryptocurrencies like bitcoin are worthless or “scorching air” as Kipng’etich places it.
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