Bitcoin a Ponzi Scheme, Fraud: Marathon’s Richards

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Feb. 25 (Bloomberg) -- Bruce Richards, CEO at Marathon Asset Management, explains why he views Bitcoin as a Ponzi scheme and fraud on Bloomberg Television’s “Market Makers.”

I know you are not a bitcoin and uzi is, but i'm dying to know what you think of these developments and what they say for the prospects of alternative currencies.

It is pretty apparent what has happened.

A currency is a pretty hard thing to create.

Look at the euro.

It took a decade or two to create the euro, and a lot of work by 17 countries to keep it together as the reserve currency backed by the countries.

To have bitcoin, which you produce on a computer, and no one really knows how to produce it decides maybe a few people who have algorithms figured out.

And then to traded and have that be a currency that you can exchange is a bit of a stretch.

Don't you think?

Rex i do, but bitcoin is the current -- i do, but it going is the current netscape.

Netscape opened the door for the world wide web.

Could bitcoin be disruptor?

It doesn't work, but behind it we will have a revolution?

I think it is closer to a common tool than it is a real currency.

I like common tools.

Click here is one of the things i've been twisting over in my head since i first saw this news -- here is one of the things i've been twisting over in my head since i first this news last night.

Were people really naiàve enough to believe that just because bitcoin was an alternative currency that it would be somehow immune to the foibles of all markets?

Rockets are run by people.

Someone will always lie, cheat, steal, and defraud.

If that is what happened at mt.

Gox then why should we be -- why should we be surprised?

Stephanie, i bet you have a bitcoin wallet.

But i cannot say that, and when this began i hated on it read -- left, right, and center.

But when you see companies like paypal start to get worried, i mean, visa and mastercard took their lumps in the beginning.

Our visa and mastercard perfect?

No.

that is a bit different.

Visa and mastercard are a payment arrangement for you to be able to purchase and they have arrangements with the banks to pay back.

This is something very different.

Is it something, which on your computer you can create by prorated out rhythms.

And then it is traded and people think that businesses and people will want to give it value.

I think it is a ponzi scheme.

I don't think it has legitimate scope within society.

And i don't think it is a viable currency.

Ok, but that is bitcoin.

What about what stephanie was alluding to, the idea that perhaps there is too much -- and this is something i know you are familiar with by virtue of your investing and the currency trade you have to execute worldwide.

Is there still too much for chin in the system?

In other words, to meet people along the way taking their marching, exacting -- taking their margin, exacting their toll?

The point of bitcoin is that it is frictionless.

I don't believe it is for chinless.

-- frictionless.

I believe it is a fraud, very simply.

Bitcoin is a fraud.

I believe that bitcoin will not have illegitimate place in history as a currency.

Well, there you go.

But i got -- i guess we got that question answered.

When people say, listen, bitcoin is used to smuggle drugs, to buy illegal things -- people use real dollars for hookers and drugs, too.

I mean, they do.

People use real money and real money is something any business or bank would accept.

And besides, bitcoin is not accepted by the banks.

It is not accepted by business at large.

There might be a few businesses who accepted, who have invested and want to see prices go up.

But i don't believe bitcoin will be used as a currency, which businesses and people will want to have as a store value, or to trade them.

I believe it is a fad and i believe it will go away.

And what you've seen recently on the exchange's first evidence of that.

A fad, a fraud, no place in

This text has been automatically generated. It may not be 100% accurate.

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