Ben McKenzie goes all out against crypto in the Senate hearing to the extent of calling it a Ponzi Scheme.
Ben McKenzie is an American actor and commentator. He is known for playing “Ryan Atwood” in the famous drama series The O.C. He studied economics at the University of Virginia and spoke before the US Senate Committee on Banking, Housing and Urban Affairs about cryptocurrency.
He went all out speaking against the whole crypto industry and how “trustless” the complete crypto environment is for everyone. He claimed that the idea of Bitcoin or altcoins is to have a decentralized algorithmic electronic money distributed across computers instead of a stable, trusted and centralized institutions like banks that protects user deposits if anything goes sideways.
The remarks came at a time when the crypto industry is going through a meltdown. We have FTX CEO Sam Bankman-Fried charged with financial misconduct after his firm misused $10 billion worth of customer deposits to pay for expenses and invested part of the deposits in the hedge fund Alameda Research owned by FTX.
He also pointed out saying that the crypto industry is similar to any online Poker game based on a Zero Sum game where the concept of win or lose is prevalent. It’s like a big Ponzi scheme where money circulates from new members to old members until the system stops receiving funds in the form of supply and the whole structure collapse.
In reality, there’s very little capital tied to the crypto ecosystem and most of the numbers are overhyped. These statements are enough to boil the blood of a crypto advocate. However, things are quite tough in the crypto market after multiple projects announcing bankruptcies and big giants like Genesis, and BlockFi eating the dust.
To add insult to injury we have the Shark, Kevin O’Leary who called FTX deal ‘a bad investment’ as he claimed to have lost $15 million after FTX filed for bankruptcy. Kevin and other celebrities were sued by FTX investors for misguidance and improper due diligence before promoting it.
Binance is the only big player unmoved by the existing market conditions and remins the only hope for the resurrection of the industry from the existing turmoil.
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Paras is a blockchain writer & video creator at Katoch Tubes. In his free time, he loves watching space exploration documentaries & Hollywood movies.