Buying bitcoins? Cryptocurrencies are like ponzi schemes: World Bank chief

The pinnacle of the arena bank in comparison cryptocurrencies to “Ponzi schemes,” the ultra-modern monetary voice to raise questions about the legitimacy of virtual currencies inclusive of Bitcoin.
“In terms of using Bitcoin or a number of the cryptocurrencies, we also are looking at it, but I’m told the giant majority of cryptocurrencies are basically Ponzi schemes,” international financial institution organization President Jim Yong Kim stated Wednesday at an event in Washington. “It’s nevertheless now not simply clear the way it’s going to work.”

The improvement lender is “looking sincerely cautiously” at blockchain era, a platform that makes use of so-called dispensed ledgers to allow digital property to be traded securely.

There’s hope the era may be utilized in developing nations to “observe the cash more efficiently” and reduce corruption, Kim said.