'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.

Bulls Take Bitcoin Above $6,800 After It Fell to Lowest Level Since May 11

Siamak Masnavi

On Wednesday (December 18), after Bitcoin had fallen below $6,500 for the first time since May 11, strong buying pressure finally arrived, taking Bitcoin to above the $6,800 level, and heading fast toward $7,000:

BTC-USD One Year Chart on 18 Dec 2019.png

According to data from CryptoCompare, yesterday (December 17), Bitcoin fell to as low as $6,601 (by around 23:05 UTC); this was the lowest price it had been since November 25:

BTC-USD One Month Chart on 18 Dec 2019.png

Bitcoin started today at $6,629, and three hours later, it had gone up by $100. Bitcoin then started falling and kept falling until 13:20 UTC by which time it had reached $6,466, which is the lowest level it has been since May 11.

Bitcoin below $6,500 was too good a bargain for the bulls to ignore, and within around two hours, strong buying pressure had helped Bitcoin to rise 6.15% to $6,864. 

Currently, Bitcoin is trading at $6,839, up 1.21% in the past 24-hour period:

BTC-USD 24-Hour - 18 Dec 2019.png

What is interesting is that around 12:36 UTC, which is before Bitcoin had reached its seven-month low of $6,466, Jacob Canfield, the #1 ranked Bitcoin analyst on TradingView, had sent out the following tweet:

And shortly after Bitcoin had started to bounce back, this is what crypto analyst/trader and macro economist Alex Krüger had to say about today's price action:

 

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