More than one in three Britons think cryptocurrencies are a Ponzi scheme – despite backing from some of Hollywood’s biggest names
More people think cryptocurrencies are a Ponzi scheme despite the backing of Hollywood stars like Matt Damon and Kim Kardashian, according to a poll.
Tally Money found that in 2,000 adults, 36% said they thought cryptocurrencies were a Ponzi scheme while under a third thought them a trustworthy investment.
The value of cryptocurrencies has continued to crash in the past few months as Bitcoin lost over two thirds of its value since it peaked last year, leaving many at a loss.
Traditional assets like gold and property however have only grown as gold prices jumped 19% since Bitcoin peaked in April last year.
The crypto crash came despite many celebrities urging fans to invest as Hollywood A-listers like Gwyneth Paltrow, Matt Damon and Kim Kardashian all now face criticism for encouraging people to invest.
Researchers also found women are less likely to trust crypto than men as 23 percent of women versus 35 percent of men trust it, according to the poll.
Despite the crash, nearly half of 18 to 24 year-olds said they still trusted crypto, while just 1 in 6 of 55 to 64-year-olds said they trusted crypto.
Hollywood A-listers like Gwyneth Paltrow, Matt Damon and Kim Kardashian encouraged people to invest in crpytocurrencies
For the older generations, 2 in 5 called crypto a Ponzi scheme, which is a scam where early investors are paid off with money from later ones to push for more investment.
Despite major losses, many who previously invested in crypto are keeping the faith.
Nearly 60 percent of crypto buyers still think digital currencies are trustworthy but over a third said they would prefer to invest in gold.
Tally Money CEO Cameron Parry said: ‘It’s not surprising that so many people think cryptocurrencies are a Ponzi scheme, because that’s exactly what most of them are.
Researchers found women are less likely to trust crypto than men
‘They artificially generate a return by creating a new currency from thin air to give the perception of increasing wealth when really there’s no inherent value to begin with.
‘Some however, like bitcoin, do have inherent functional and operational value. But ultimately no one knows how far it will rise or fall in the future.
‘Gold on the other hand has been around for millennia and is a trusted, safe store of value, particularly in times of uncertainty and high inflation.’