Former Israeli Prime Minister Ehud Barak blasted the digital currency system known as “Bitcoin”, comparing it and similar so-called “crypto-currencies” to Ponzi schemes.
Barak — who was prime minister from 1999 to 2001 — made the remarks at the Globes Most Promising Startups event in Tel Aviv, Israel. Ehud Barak praised blockchain as an important technology but thinks bitcoin is a Ponzi scheme that should be avoided.
“Blockchain itself is a mathematical technological concept and an interesting and important methodology. The cryptocurrencies, bitcoin, and all the others, that’s a Ponzi scheme. I don’t believe that it’s possible to make a currency in this way in the current generation, and I wouldn’t invest in anything that’s related to cryptocurrencies. Whoever has got the patience and understands blockchain deeply, can find a lot of uses for it, from keeping sensitive medical information through to contracts.”
Barak recently became Chairman of medical cannabis company InterCure Ltd, and was asked at an event, whether investing in the drug was comparable to the Bitcoin mania of last year.
While Barak does not think highly of crypto he does see opportunity in blockchain calling the tech “interesting and important.”
According to Barak, I do not believe that it will be possible to make a coin like this and I will not invest in crypto-currencies.”
“Anyone who has patience and understands the depth of blockchain will find many uses, from holding sensitive medical information to smart contracts.”
However, like many crypto skeptics, Barak thinks blockchain is a potentially game-changing innovation that could disrupt many different sectors, including business, healthcare, banking, and supply-chain management.