Cryptocurrency has really grown in the past couple of years with many people involved in its investment. Crypto has been seen as alternative to physical money but there has been big issues with these virtual currencies.
Some of the issues is its adoption rate as well as the ‘common’ volatility issue among others. MetaMask co-founders, Aaron Davis and Dan Finlay have issued warnings about the budding space.
They both made their opinions about crypto known in a joint interview with Vice Motherboard’s Maxwell Strachan published on July 14. The co-founders of one of the most popular software crypto wallets, MetaMask compared investing in crypto to gambling. They also warned against directing one’s life savings into cryptocurrency.
Davis said, ”It feels too little too late, but putting your money in cryptocurrencies is gambling.
‘‘I’m not saying what we have right now is the future of finance and [you should] move your life savings over. A lot of people are advocating that and I think that is extremely dangerous behavior.”
On top of that, Davis also admitted that, when he first started developing the MetaMask system, he couldn’t predict that Ethereum (ETH) would become “so primarily financial” and that he wasn’t entirely surprised by the emergence of complex blockchain Ponzi schemes.
Finlay in his words talked about the issues with crypto. This include bad actors, resulting in failures and crashes in the crypto ecosystem. He admitted that MetaMask cannot do much to prevent fraudsters from taking advantage of these blind spots.
“We can’t stop people from making Ponzis on blockchains. (…) It’s by definition impossible for us to wrap the whole thing into one unified bow and enforce it in a direction.” he said.
He however stated that ponzi schemes can be banned. He said its achievable by making online crypto relationships more “consensual”. This would make it more difficult “for unreputable things to gain credibility.”