Former Israel Prime Minister Ehud Barak discredited Bitcoin at an event in Tel Aviv on Sunday. Barak views it as nothing but a Ponzi scheme. Ehud joins a growing list of pessimists including billionaire investor Warren Buffet and Dr. Nouriel Roubini who have predicted that Bitcoin would come to a sad end.
Ehud served as the 10th Prime Minister of Israel and led the Labor Party until 2011. He also served as a Defense Minister and Deputy PM in Benjamin Netanyahu’s government in 2009.
Currently, the former PM is the chairman of the InterCure Ltd, which invests in medical marijuana. Responding to a question whether investing in medical marijuana is similar to investing in volatile cryptos, Barak said he doesn’t think Bitcoin is a legal currency and would never invest in it or other virtual currency. He stated:
“The cryptocurrencies, Bitcoin and all others, that’s a Ponzi scheme. I don’t believe that it’s possible to make a currency in this way in the currency generation, and I wouldn’t invest in anything that’s related to cryptocurrencies. Whoever has got the patience and understands blockchain deeply, can find a lot of uses for it, from keeping sensitive medical information through to contracts.“
While Ehud spoke great things about the blockchain – the technology that powers digital currencies –he is less than willing to accept Bitcoin as a currency. Although the use of Bitcoin is still limited due to the slow adoption rate, its advantages against the current monetary system are well-known among individuals and businesses. It can be encrypted to ensure the safety of your money. Also, Bitcoin protocol cannot be manipulated by anyone as it is cryptographically secure.
It is worth noting that Israel is one of the countries that have been quite cold toward cryptocurrencies. Even so, the country government has allowed BTC as a taxable asset and is seeking to regulate Initial Coin Offerings (ICOs).