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Ethereum is a 'pyramid scheme', once scam DeFi space blows up, only Bitcoin will be left

Kitco News

(Kitco News) - Altcoins, and Ethereum in particular, are "just outright scams" and will should eventually cease to exist, said Max Keiser, host of the Keiser Report and co-hot of The Orange Pill Podcast.

Speaking to Michelle Makori, editor-in-chief of Kitco News, Keiser noted that altcoins, or anything other than Bitcoin, are not sustainable by nature, nor do they have the characteristics that Bitcoin does that makes it sound money: scarcity, anti-fragility, decentralization, and the ability to not be "pumped and dumped" through a pre-mine.

"Every single day people are waking up to the fact that [altcoins] are just scams. They're just outright scams. There hasn't been any useful development on any of these altcoins at all that hasn't been shown to be an utter scam. These DeFi projects routinely blow up, people are constantly getting blown up. [These protocols] are living in a grey area that's outside of all regulations," he said.

Bitcoin, on the other hand, is the best solution for sound money that mankind has ever come across, Keiser said.

"[Bitcoin] solves a problem that humans have had for hundreds of thousands of years and that is a need to exchange value for value over space and time. And so, you have gold, which is great for exchanging value over time but it's very bad to do so over space. In other words, it's hard to move gold, so if you want to move a billion dollars of gold to the airport, it's not practical. Fiat money, you can move it over space, you know, like with suitcases of one-hundred-dollar bills, but over time it inflates away out of existence," he said. "With Bitcoin, you can transport it over space and time."

U.S. dollar 'apocalypse' coming in 10 years, more countries will make Bitcoin legal tender

Keiser likened Bitcoin's present state of adoption to that of the internet in its early days. Eventually, Bitcoin's usage will be "ubiquitous," he said.

"Over the past 40 years, every single industry in the world has been transformed by software, and every company, at the end of the day, is a software company. Amazon is a software company. Chrysler Motors is a software company. All the medical technology companies are software companies. Software runs the world. The last industry where software transformed that industry was money itself. We're still mired in 100-year old, 200-year old technology. Bitcoin upgraded money and now it's contemporized with the rest of the software-driven world," he said.

Keiser used to hold gold, but has recently sold all his gold holdings in favor of Bitcoin.

"Over the years, we've had this discussion of Bitcoin versus gold, and every year now, the case for Bitcoin is superior to gold. That story gets stronger and stronger. And therefore, some of the negatives of gold are more obvious and more disturbing," he said.

For more information on Bitcoin ETFs, regulations, and energy consumption, watch the video above.

Follow Michelle Makori on Twitter: @MichelleMakori

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Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.