In April 2018 Vox.com published an article by Bill Harris (former CEO of PayPal) entitled “Bitcoin is the biggest scam in history”.
The article was then also resumed from Forbes and had a strong echo in public opinion, although it did not impact market prices.
Paypal has also opened to Bitcoin
On April 24, 2018, the price of BTC opened at $ 8,900 and closed at $ 9,600, thus an increase of almost 8%, although the following day it closed at $ 8,000.
At the time it was already clear enough that Bill Harris was most likely wrong but today, with the price of Bitcoin rising to $ 47,000, those statements of his have really aged very badly.
The same PayPal, which Harris left in 2000 after only a year as CEO, last year literally opened up to Bitcoin by allowing first the buying and selling of BTC and then even the payments.
In that article Harris explicitly claimed that Bitcoin was a bubble ready to burst, calling it “A colossal pump-and-dump scheme” in which phantom “promoters” would have inflated the price creating speculative frenzy.
Really came to join him at ICOs, indicating a very poor understanding of this asset.
He said that Bitcoin it was not accepted anywhere as a means of payment, while today it is legal tender in El Salvador.
He said that dollars, pounds, euros, yen and renminbi were better reserves of value than BTC, while in these three and a half years they have all lost value against bitcoin.
Harris argued that bitcoin was better suited for criminal activities, given that law enforcement could not easily track who buys and who sells, while today all the major exchanges in the world have KYC.
Bitcoin and the growth in value over time
The former CEO of PayPal explained that most of those who used bitcoin in large quantities were criminals. To date instead the single largest holder of BTC is Grayscale, or an authorized company operating on traditional financial markets.
He said even ordinary citizens who bought bitcoins they were breaking the law because they should have registered every sale of cryptocurrency as a capital gain or loss, while now the law no longer obliges them to do so.
He said it took about one hour to confirm a bitcoin transaction, and that at most five transactions per second were allowed worldwide. Today with Lightning Network they are already catching up rates comparable to those of traditional payment circuits in fiat currency.
He said that transferring $ 100 in bitcoin cost around $ 6, while with LN it now costs less than $ 0.01.
“All of this would be a comedy show if innocent people weren’t at risk. But ordinary people are investing some of their savings in cryptocurrencies. A stock broker is encouraging its clients to buy bitcoins for their retirement accounts ”.
Anyone who invested $ 1,000 in Bitcoin on April 24, 2018 would find themselves with around $ 5,300 today.