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“Bitcoin Could Collapse if Everyone Used It” – UK Shadow Home Secretary Diane Abbott

Excess use of Bitcoin could cause the pioneer cryptocurrency to collapse in the long run.

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Diane Abbott, the Shadow Home Secretary of the United Kingdom, has alleged that Bitcoin is a gigantic ponzi scheme, promising that if elected, the Labour Party which she belongs to would regulate the scheme. She made her position known while speaking in an interview with The House magazine, according to a report made by Express news on Friday 2nd March 2018.

While speaking to The House, Abbott said that Bitcoin could “easily collapse,” adding that the government of UK should quickly tighten up on its spread across the rest of the economy.

In a related development, The Governor of the Bank of England, Mark Carney, has added his voice on the need to hold Bitcoin and other cryptocurrencies to the “same standards,” as the rest of the financial system.

Abbott Has a Strong Point

Abbott feels that one of the problems of Bitcoin is that it resembles a gigantic ponzi scheme. Speaking further, she said,

And if everyone took their bitcoin money and tried to buy a new car all at once the whole thing would collapse.

Fact Checking?

The Labour Party Home Secretary has unfortunately been in the news several times because of her mistakes when put on the spot. Her ill-informed remarks are well documented. For instance, she once said that her party would be able to hire 10,000 people for the United Kingdom’s Police at a total cost of £300,000, which would amount to a yearly salary of £30 or slightly above £40 per each officer that’s newly-hired.

In one of her tweets, Abbott also said that one of the lessons to learn from the Grenfell Tower fire incident of 2017 is that “fire puts out water,” asking the government of UK to urgently address the drought in the Indonesian province of Davao de Norte, which in reality is situated in the Philippines.

It could be recalled that some financial experts have openly criticized Bitcoin in the past. One such notable figure is the President of JP Morgan Chase, Jamie Dimon, who dismissed the digital currency as a “bubble,” a statement he later admitted that he regretted.

What do you think about Bitcoin? Is it a Ponzi scheme? Share your views using the comments section below.

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