According to a survey, more and more people think cryptocurrencies are a Ponzi scheme despite the support of Hollywood stars like Matt Damon and Kim Kardashian.
count the money found that out of 2,000 adults, 36% said they thought cryptocurrencies were a Ponzi scheme while less than a third considered them a trustworthy investment.
The value of cryptocurrencies has continued to tumble over the past few months, with Bitcoin losing more than two-thirds of its value since peaking last year, leaving many at a loss.
Traditional assets like gold and real estate, however, only rose when the price of gold jumped 19% since Bitcoin peaked in April last year.
The crypto crash has come despite many celebrities urging fans to invest, as Hollywood stars like Gwyneth Paltrow, Matt Damon and Kim Kardashian are now all coming under fire for encouraging people to invest.
The researchers also found that women are less likely to trust crypto than men, as 23% of women compared to 35% of men trust it, according to the survey.
Despite the crash, nearly half of 18-24 year olds said they still trust crypto, while only 1 in 6 of 55-64 year olds said they trust crypto.
Hollywood stars like Gwyneth Paltrow, Matt Damon and Kim Kardashian encouraged people to invest in cryptocurrencies
For older generations, 2 in 5 called crypto a Ponzi scheme, which is a scam where early investors are paid with the money of later ones to push for more investments.
Despite significant losses, many who have already invested in crypto are keeping the faith.
Nearly 60% of crypto buyers still believe digital currencies are trustworthy, but more than a third said they would rather invest in gold.
Tally Money CEO Cameron Parry said: “It’s no surprise that so many people think cryptocurrencies are a Ponzi scheme because that’s exactly what most of them are. “
Researchers found that women are less likely to trust crypto than men
“They artificially generate a return by creating new currency out of thin air to give the impression of growing wealth when there really is no intrinsic value to begin with.”
“Some however, like bitcoin, have inherent functional and operational value. But ultimately, no one knows how much it will increase or decrease in the future.
“Gold, on the other hand, has been around for millennia and is a reliable and secure store of value, especially in times of uncertainty and high inflation.”