Bill Harris described the cryptocurrency as a “scam” and a “colossal pump-and-dump scheme”. “I’m tired of saying, ‘Be careful, it’s speculative.’ Then, ‘Be careful, it’s gambling.’ Then, ‘Be careful, it’s a bubble.’ Okay, I’ll say it: Bitcoin is a scam,” he wrote.
Harris’ post was published at online publication Recode’s site. According to Harris, bitcoin’s volatility and price swings have ensured that it cannot be used as a store of value or means of payment by businesses.
“It only has value if people think other people will buy it for a higher price – the Greater Fool theory,” he writes. “In what rational universe could someone simply issue electronic scrip — or just announce that they intend to — and create, out of the blue, billions of dollars of value? It makes no sense.”
NYU economist Nouriel Roubini recently called bitcoin “the biggest bubble in human history”, using a similar set of arguments as Harris in his screed against bitcoin. Curiously, Harris’ former company does not seem to share his views. PayPal has reportedly filed for a patent that shortens transaction time involving cryptocurrencies.
