Bitcoin: Innovative Currency or a Historic Ponzi Scheme?

▲ Bitcoin (BTC) ©Dasol Ko

Amidst the clash between blind faith in Bitcoin (BTC), the leading virtual asset, as a perfect currency, and fierce criticism of it as a massive Ponzi scheme, US regulatory authorities are accelerating the establishment of clear standards through legislation, defining it as a Commodity.

According to cryptocurrency media Watcher.Guru on April 29 (local time), actor Ben McKenzie, promoting his new documentary 'Everyone Is Lying to You For Money', strongly criticized the entire virtual asset industry as a modern Ponzi scheme based on lies.

In a recent interview, McKenzie claimed that billionaire Jeffrey Epstein recognized the existence of Bitcoin and was deeply involved before 90% of the public even knew about it. He highlighted the dark side of Bitcoin, stating that Epstein funded early Bitcoin development through donations to the Massachusetts Institute of Technology (MIT) Media Lab and also invested in the well-known virtual asset exchange Coinbase.

On the other hand, Jack Dorsey, founder of X (formerly Twitter) and Block, holds the opposite view. Dorsey, a prominent Bitcoin enthusiast, is convinced that Bitcoin functions as actual money, beyond just a store of value. His fintech company, Block, is also focusing its entire corporate capabilities on building Bitcoin and blockchain infrastructure.

However, the positions of the U.S. Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) differ from the extreme views of McKenzie or Dorsey. The two regulatory agencies recently agreed that Bitcoin is closer to a digital asset, or commodity, rather than a security, drawing a line under the unproductive debate.

Furthermore, the US political sphere is expected to completely remove regulatory uncertainty through the Clarity Act, a US cryptocurrency market structure bill likely to pass by the end of next month. This bill is expected to solidify Bitcoin's non-security and commodity status, thereby raising public awareness and serving as an institutional safeguard to control the potential risks of the virtual asset industry.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*