“Stablecoins are a type of scam,” said Argentine lawyer Camilo Jorajuría de León in a question and answer session on Bitcoin.
During the talk organized by the legal and accounting consultancy We&Law, this professional, coordinator of Legal and Accounting Issues of the ONG Bitcoin Argentina, expressed himself on various matters related to cryptocurrencies, like calls stable coins.
Jorajuría de León maintains that “money fíat, that is, the money of the States is a scam because they create money, distribute it among themselves and steal the money from everyone else who uses it. “He added that” all those who use fiat currency are being scammed by the creators of those coins. ”
This lawyer also ensures that, with the exception of Bitcoin, “all other cryptocurrencies are scams.” For this reason, he is convinced that a stablecoin is “a scam on top of a scam.” He commented that creating a stablecoin is “a very good business” and that these coins “are very fashionable.”
“You create your own stablecoin and the ‘atás’ to that scam [una moneda fíat]. So your stablecoin is basically a shitcoin that guarantees that the price of the currency will decrease as the price of the fiat currency decreases, “said the professional.
In saying the latter, the consultant on issues related to bitcoin referred to the devaluation suffered by fiat currencies, even those considered tougher such as the dollar or the euro. For example, the purchasing power of the US currency declined to levels not seen in 10 years. “Do stablecoins guarantee that they go down in value depending on how the dollar goes down?” The lawyer asked.
Jorajuría de León does not deny that stable cryptocurrencies may have some use, for example, for traders. Even so, he maintains that it would be better for traders, when taking positions outside of bitcoin, to do so in something other than a stablecoin. “It doesn’t have to be in a currency tied to the state,” he said.
For the controversial lawyer, all stablecoins are scams
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“Ethereum is a scam”
The passing of the conversation led the lawyer to pronounce his opinion on the cryptocurrency that occupies the second place, according to its market capitalization. “Ethereum it is a scam “, sentenced.
The exponent gave his arguments in favor of that statement. He said that there are many proposals on the things that could be done with Ethereum, but that, in practice, there is none of that. “The only thing that has been created on Ethereum is a series of scams called ICO [oferta inicial de moneda, por sus siglas en inglés]”.
“To get investments you have to comply with certain legal regulations. You cannot get money from Doña Rosa just like that because there is a system that seeks, at least in theory, to protect investors,” he said. He added: “With this ICO, they managed to bypass those regulations and get money from unsuspecting investors by promoting projects that are never carried out.”
Jorajuría de León differentiated Bitcoin from Ethereum. He noted that the creation of Satoshi Nakamoto “It is not a company, it does not have any foundation behind it, it was not created for those purposes and, however, from 2009 to the present it works as money.
He did not comment on this occasion on the decentralized finance protocols (DeFi, for its acronym in English), so mentioned in the last year. Anyway, this bitcoiner has made known his opinion regarding this issue on other occasions. “Eventually the ponzi pyramid will fall to the defiers and voila. This is how the victims will learn while the scammers (the ones at the top of the pyramid) will start their next scam,” he tweeted on July 31, 2020.
On litecoin (LTC), the lawyer stated that “it is worse than Ethereum.” “Litecoin is basically a copy of bitcoin, they don’t even update it as much as bitcoin,” he explained. He rejected the widespread idea that litecoin is, with respect to bitcoin, what silver is with respect to gold: “If we were in 1850 I would tell you to buy gold, not buy silver … if you have enough.”
After saying that, the speaker spoke about the divisibility of BTC. The pioneering cryptocurrency, having a unit divisible into 100,000 parts called “satoshis”, allows even those who do not have a large capital to access it. This would make it superior to gold, which can generally only be acquired through a large monetary investment.
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“Bitcoin is the best money that has existed in history”
“Bitcoin is money and, in my vision, it is the best money that has existed in the history of humanity,” said Jorajuría de León. Among the characteristics of the cryptocurrency that stands out is its scarcity: unlike fiat currencies or precious metals, the total circulating of bitcoin is limited. There will never be more than 21 million BTC. This means that, in theory, its value increases as its demand grows.
“What if you have 100 Argentine pesos in your pocket? You can buy a milk and an alfajor. What if you keep them for 1 or 2 years?” With that rhetorical question, the lawyer exemplified the devaluation of fiat currencies and differentiated it from the appreciation that bitcoin has had so far. “I don’t usually talk about the price of Bitcoin because the technology is more important, but basically the number goes up,” he added, describing the cryptocurrency as “a deflationary monetary technology that appreciates over time.”
According Jimmy Song, renowned Korean-American popularizer, Bitcoin promotes prudence or, what some bitcoiners called “low time preferences.” By this he refers to the fact of reducing present expenses to benefit from the possible future valuation of the asset. In a similar line of thought, Jorajuría de León said in his presentation that “bitcoin takes you to better protect money because it takes you out of consumerism,” Criptonoticias indicated.
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