Former PayPal CEO Bashes Bitcoin, Saying ‘There’s Just No Value in BTC’
Former CEO Of PayPal Bashes Bitcoin, Saying That “There’s Just No Value There”
Bill Harris, the former CEO of PayPal, was recently interviewed by CNBC on August 14th, and the topic of Bitcoin came up. Many investors are becoming nervous about the state of Bitcoin, as the entire market came plummeting to a near-death this last week for altcoins and the majority of major coins. Bitcoin happened to be the least affected in this market-wide loss, and Harris believes that this is far from the end, claiming “there’s just no value there.”
On the Fast Money segment, it is clear that Harris has no faith in the coin whatsoever, calling the following of the industry a “cult” that makes “many claims” about how it can help users. Even though he said that Bitcoin’s big platform is that it is “instant, free, scalable, efficient, secure, globally accepted, and useful,” he denies that any of those characteristics are based in fact.
This is not the first time that Harris has discussed his disdain for Bitcoin. In fact, he took the opportunity to call it a “colossal pump-and-dump scheme, the like of which the world has never seen,” during an op-ed in April. In 2017, Bitcoin was in its heyday. It rose to a price of almost $20,000 but dropped by nearly 50% by the end of the first quarter of 2018. On Tuesday, it reached a low of less than $6,000, which is has not seen in months. However, his comments on Tuesday were more foreboding than anything else, expressing his belief that the value will keep dropping, until it is “eventually a whole lot closer to zero.”
Harris believes that there is not really a point to cryptocurrency at all. As he puts it, “We've got digital currencies. And we've got digital currencies that are more stable, more widely accepted and have intrinsic value. We've already got it — it's called the dollar, the yen, you name it.”
Even though his faith has already been evaporated, he claims that the main concerns about Bitcoin have to do with the transaction speed, scalability, and volatility in this market. Due to these problems, Harris believes that it is “useless as a payment mechanism and ridiculous as a store of value.” He added, “There has to be something underpinning it. Bitcoin makes no revenue, no profitability.”
To help with the recent drop, Bitcoin attempted to clean up the losses, helping the coin to trade at $6,114. There have been some investors that believe that the kickback is due to the actions of the Securities and Exchange Commission lately, who delayed their decision on the Bitcoin Trust ETF from VanEck SolidX on August 7th. This delay follows their recent denial of the proposal created by Cameron and Tyler Winklevoss last month.
Harris is the founder of Personal Capital Corporation.
You can watch the full video here: