More people think cryptocurrencies are a Ponzi scheme despite the backing of Hollywood stars like Matt Damon and Kim Kardashian

Despite the support of Hollywood celebrities like Matt Damon and Kim Kardashian, more people believe cryptocurrencies are a Ponzi scheme, according to a poll.

Twenty-one percent of 2,000 adults surveyed by Tally Money believed cryptocurrencies were a Ponzi scheme, while only one-third thought they were a reliable investment.

Since its peak last year, Bitcoin has lost over two thirds of its value, leaving many people at a loss as the value of cryptocurrencies has continued to plummet in recent months.

However, traditional assets like gold and real estate have only increased in value as gold prices have risen by 19% since Bitcoin peaked in April of last year.

Hollywood A-listers like Gwyneth Paltrow, Matt Damon, and Kim Kardashian all now face criticism for encouraging people to invest, despite the fact that many celebrities advised fans to buy cryptocurrency.

Researchers discovered that women are less likely than men to trust cryptocurrency, with only 23% of women believing in it compared to 35% of men.

While only 1 in 6 people aged 55 to 64 said they trusted cryptocurrency, nearly half of those aged 18 to 24 said they did despite the crash.

In the older generations, 2 in 5 referred to cryptocurrency as a Ponzi scheme, which is a fraud in which early investors are rewarded with funds from later investors in order to encourage additional investment.

Many people who had previously invested in cryptocurrencies are still holding on despite significant losses.

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.

‘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.’