Bitcoin ‘Ponzi’ Concern Sparks Warning From Estonia Bank
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The central bank of Estonia, where Swedish banks dominate the lending market, urged consumers to steer clear of Bitcoin and similar virtual currencies, warning such software could prove to be little more than a “Ponzi scheme.”
Bitcoin “is a problematic scheme,” Mihkel Nommela, head of the Estonian central bank’s payment and settlement systems department, said in an e-mailed reply to questions. “All risks are assumed by the user, who has no one to turn to for help.”