Has it ever crossed your mind that all the cryptocurrency could all just be a scam? Not a scam in a way that they run away with your money but a more subtle, social media scam… just like Facebook where they sell all our data but elude us into thinking that it’s all free when we’re the ones that are being robbed off!!
Every idea has its optimist and pessimists, and it is important to have both so we know both sides of the story and aren’t deluded by one. The generational divide can give us some interesting things to work on regarding the fate of crypto and blockchain adoption.
We keep hearing how it is speculative, a gamble or a bubble bound to burst. So is it true that at the end of the day, it’s merely a scam and nothing more?
According to Roubini, who’s a professor at New York University that;
“Crypto is the mother or father of all scams and bubbles.”
We’re compelled to think how much of it could be true. It’s certain that hundreds of ICOs have been scams and real fraud has occurred. So, is crypto more about greed rather than empowering the individuals?
There’s no doubt that crypto is a lot like gambling. The high-risk high-reward that lures everyone in and leaves people broke is what seems to be happening when it comes to crypto as well. It’s a well thought out bubble.
So, if you got into crypto when it was at its peak, you might have lost most of its value because of the high volatility. The warning signs came out when Bitcoin almost touched $20,000 but people didn’t seem to be bothered. They couldn’t see past the problem which is; the higher the rise, the harder the fall. Instead, they just seemed to be getting drunk on its rise.
Crypto has the fanatical cult-like following which inspires people to do craziest of things.
The growth of Bitcoin has been remarkable but the question remains if the world really needs it? It is important to have the blockchain technology? Is blockchain one of the most hyped phenomena of this decade? Probably, yes.
People with zero financial literacy are going crazy over crypto only because they know the ins and outs of the blockchain, that too, not completely.
The main problem seems to have arisen from the pump and dump scheme. The promoters keep pumping up the price to create a speculative frenzy and then dump some of their holding at artificially high prices. Some of them are PURE frauds and a 10 percent of the money raised for ICOs has been stolen. The victims are, unsurprisingly, the ill-informed buyers trapped in greed.
Bitcoin has no value.
It’s a big thing to say but here’s why;
Well, people claim to say that that there a three ways the cryptocurrency is of value. One, as a means of payment. Two, a store of value and three, a thing in itself. Let me remind you that bitcoins are accepted almost nowhere. Even where they do the value can fluctuate as much as 10 percent in a day so it is pretty much useless.
Second, the high volatility makes it a riskier investment and a store of value. What is the point if you end up losing more than you initially had, right? Moreover, the storehouses are far less reliable and trustworthy.
Thirdly, bitcoin has no intrinsic value. It only has value when other people buy it for a higher price.
The most affected lot of this seemingly ponzi scheme are ordinary people who are pouring in their life savings. Like I say, it’s a poor man’s Wall Street. Bitcoin has become an idol and it really is a symbol of poverty.