The co-creator of the popular meme token Dogecoin (DOGE) says that a lack of traditional oversight leaves crypto traders vulnerable to being scammed.
In a new interview with Australian media outlet The Project TV, Jackson Palmer, who along with Billy Markus developed Dogecoin in 2013 as a joke, He says Cryptocurrencies are speculative in nature because they derive value from other people rather than their actual usefulness.
“Cryptocurrency in essence is just a digital currency. The only reason it has value is because people think it does.
It is largely a purely speculative market. It doesn’t really provide anything to society. You can’t really pay rent with that. You can’t buy your groceries with it, necessarily.
It is a bit like an online casino. Those are kind of digital chips.”
Palmer goes on to share his belief that the digital asset ecosystem is like a house of cards.
“The best way I think about it is that you’re buying a receipt essentially saying you bought it. That is all.
Other people in the world will honor that receipt. Personally, I think it’s a bit like a house of cards.”
The DOGE co-founder concludes by stating that crypto assets are not inherently a scam, but instead enable misconduct due to a lack of government oversight and regulation that would protect ordinary consumers.
“Actually, I don’t think cryptocurrency itself is a scam. What it is, it is a facilitator of scams because it is something that exists outside of government controls. Because this transaction is irreversible.
It has really provided a means for scammers to come in and do all of this without all that pesky government oversight. They can’t be caught that easily.”
Last year, Palmer sparked a viral tweet storm criticizing digital assets and referring to decentralization and sound money mantras as “fronts” and “get-rich-quick schemes” that wealthy people use to lure financially desperate people into traps. and evade taxes.
More recently, he warned that a crypto winter was coming despite the massive devaluation that has already occurred across all assets in the space.
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Featured Image: Shutterstock/Natalia Siiatovskaia/phasaibd