For the king of South African hedge funds, cryptocurrencies have “no intrinsic value”
In observations made during an interview, Jean-Pierre Verster, creator of one of the most important South African hedge funds, expressed positions on cryptocurrencies similar to those of opponents of blockchain technologies. Although he points to foreign exchange restrictions and hyperinflation as some of the legitimate factors contributing to the popularity of cryptocurrencies, Verster still attacks “the application of the cryptocurrency blockchain”.
The investor also warned of an inevitable collapse if all people who wanted to get involved in digital currencies were to finally do so. Verster finally said that, according to him, cryptocurrencies would have elements of a Ponzi scheme, which means that over a long period of time, prices go up, go up, and it seems that the value goes up, and then everything collapses. For this, he said, he has decided not to invest in the field of cryptocurrencies.
Verster’s latest comments on cryptocurrencies reveal his position against all types of investments, even traditional ones, in which the asset has no intrinsic value, thus subjecting it to strong fluctuations depending on what other people think of the time. in time that it is worth.