Incoming Philippine central bank governor Felipe Medalla has suggested that people investing in cryptocurrencies like bitcoin are big fool theorists. He also claimed that people investing in cryptocurrencies do so because they want to “hide their money from the government.”
“Very scary” investment strategy
Felipe Medalla, the new governor of Bangko Sentral ng Pilipinas (BSP), said that bitcoin investors only buy cryptocurrencies because they are convinced that someone else will buy the same digital asset at a higher price. According to Medalla, speaking at a virtual roundtable organized by local media, this investment strategy is “very intimidating.”
As well as informed Medalla from Business World believes that the value proposition of cryptocurrencies is based on the so-called big fool theory. According to Investopedia, the theory states that prices rise because investors can sell overpriced securities to other investors or “big fools”. Investors who adhere to this theory are known to ignore valuations, income statements, and all other data.
Using cryptography to hide funds
In addition to statements about the big fool theory also recently put forward by Bill Gates, the new BSP governor said that people who choose to invest in cryptocurrencies do so because the digital currency gives them the ability to hide their assets. He explained:
This is a new tool that enhances the ability to do just that. There are many people who want to hide their money from the government.
While the BSP does not directly regulate cryptocurrencies, it has issued guidelines requiring Virtual Asset Service Providers (VASPs) to obtain a license from it. Medalla, meanwhile, is quoted in the same report as expressing his approval of the implementation of a know-your-customer (KYC) and anti-money laundering policy on VASPs.
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