The co-creator of popular meme token Dogecoin (DOGE) says a lack of traditional oversight leaves crypto traders vulnerable to being fleeced.
In a new interview with Australian media outlet The Project TV, Jackson Palmer, who along with Billy Markus developed Dogecoin in 2013 as a joke, says cryptocurrencies are speculative in nature because they derive value from other people rather than their actual utility.
“Cryptocurrency at its core is just a digital currency. The only reason that it has value is because people think it does.
It is very much a purely speculative market. It doesn’t really provide anything back to society. You can’t really pay your rent with it. You can’t buy your groceries with it, necessarily.
It’s a little bit like an online casino. Those are kind of the digital chips.”
Palmer goes on to share his belief that the digital asset ecosystem is like a house of cards.
“The best way I think about it is that you’re buying a receipt essentially that says you bought it. That’s about it.
Other people in the world will honor that receipt. I think it’s a little bit of a house of cards, personally.”
The DOGE co-founder concludes by stating crypto assets are not inherently a scam but enable malfeasance due to the lack of government oversight and regulation that would protect ordinary consumers.
“I actually don’t think that cryptocurrency itself is a scam. What it is, is a facilitator of scams because it is this thing that exists outside of the controls of governments. Because it is this irreversible transaction.
It really has provided a means for scammers to come in and do all of this stuff without all that pesky government oversight. They can’t get caught as easily.”
Last year, Palmer sparked a viral tweetstorm criticizing digital assets and referring to mantras of decentralization and sound money as “facades” and “get-rich-quick schemes” that wealthy people use to lure financially desperate individuals into traps and avoid taxes.
More recently, he warned that a crypto winter was coming despite the massive devaluation that has already taken place across all assets in the space.
Check Price Action
Don’t Miss a Beat – Subscribe to get crypto email alerts delivered directly to your inbox
Follow us on Twitter, Facebook and Telegram
Surf The Daily Hodl Mix
Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any loses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
Featured Image: Shutterstock/Natalia Siiatovskaia/phasaibd
Credit: Source link