'Bitcoin Is a Scam... a Colossal Pump-and-Dump', Says Former CEO of PayPal and Intuit

Siamak Masnavi

Bill Harris, former CEO of Intuit (1995-1999) and PayPal (1999-2000), in a post for Recode, calls Bitcoin (BTC) a scam and "a colossal pump-and-dump scheme, the likes of which the world has never seen."

In this article, Harris, who is the founder of online personal wealth management company Personal Capital, argues that "a bitcoin has no value at all" since it fails as a means of payment (very few places accept it, in addition to the problem of price volatility), it is not a good store of value (again, due to its extreme price volatility), and it lacks any intrinsic value.

He claims that the best use case scenario for cryptocurrencies is "criminal activity" since crypto transactions are harder for the authorities to investigate. He says that's why Bitcoin's heaviest users are criminals. To prove his point, he points out that crypto exchanges are not that safe, that many ICOs are scams, and that much of remote hacking involves cryptojacking.

Next, Harris explains that even the non-criminal portion of Bitcoin's users are not that innocent since most of them don't bother to report the sales of their bitcoins to the tax authorities.

He then moves on to complain about how slow and expensive it is to send someone bitcoin.

And, finally, as if all of that was not enough reason for him to dislike Bitcoin, he says that Bitcoin is "absurdly wasteful of natural resources" since the process that creates them -- mining -- is computationally expensive and requires a lot of electricity.

Bitcoin Mining Hardware Manufacturer Canaan to Be Publicly Listed in US: Report

Michael LaVere
  • Chinese mining rig manufacturer Canaan Creative to be listed in US in mid-November.
  • The company has reportedly completed all procedural work with the SEC for its initial public offering.

Chinese bitcoin mining rig manufacturer Canaan Creative will be listed in the U.S. next month, according to sources close to the situation. 

In July Canaan, one of the world’s largest crypto mining rig manufacturers filed an application for an initial public offering (IPO) with the United States Securities & Exchange Commission (SEC). An anonymous source told Chinese news outlet 8BTC that the company, valued at $1.5 billion, is looking to issue 1.26 billion shares to be closed on Oct. 20. 

The source revealed that Canaan completed all of the procedural work for the IPO earlier in the month and that its valuation is expected to increase to $2 - $3 billion following institutional inquiry.

Despite rival miner manufacturer Bitmain failing to execute on its own IPO, Canaan executives remain confident that their issuance will go smoothly. Kong Jianping, co-lead director of Canaan, commented on a positive relationship with the SEC and said the US regulatory body has a good understanding of cryptocurrency and blockchain. 

In addition, Canaan reports strong demand for mining rigs despite the slump in pricing for bitcoin over the last month. Chen Feng, sales director at Canaan, told 8BTC the company had received letters of intent for more than 500,000 units of its latest A10 and A11 mining rigs and expects that number to surpass one million by the end of next year.

Featured Image Credit: Photo via PIxabay.com