The Expert Called The Ethereum Cryptocurrency Fraudulent
One of the chief specialists of Skerry Technologies, Nicholas Weaver, called Ethereum a “self-assembled Ponzi scheme.” In other words, he called the cryptocurrency project fraudulent. The expert noted that the structure of digital currencies’ work implies the possibility of illegal actions. The specialist made such a statement, speaking to Kaylee Linez and Matt Miller on Bloomberg Crypto.
Criticizing the Ethereum network, Weaver assured us that this cryptocurrency is indeed a fraudulent scheme from an economic point of view. He also noted that the transition of Ethereum to the Proof-of-Stake algorithm would not solve all issues.
The research scientist added that if you look at system throughput, it is not affected by choice of proof-of-work or proof-of-stake mechanism. Weaver explained that Ethereum has 1/5000 of the computing power of a small Raspberry Pi computing module, and switching to PoS will not solve any problems.
The expert assured: us that the mining of digital currencies burns half the electricity in the world. Still, at the same time, it allows the processing of only a tiny fraction of all transactions. In his opinion, this technology is still fragile and poorly protected, and many can exploit it for selfish purposes.
The specialist spoke about numerous vulnerabilities in the Ethereum algorithms. He emphasized that when the DAO is hacked, hackers can change the code and this has bad consequences. Weaver noted that this cryptocurrency from a technological point of view is not as innovative as they try to present it.