Crypto: A Scam

Crypto: A Scam 

Some claim that cryptocurrency, a means of escaping banks and the government, will be the currency of the future. However, upon closer inspection, it appears to be a massive fraud based on excessive hype and people who fervently want to think that they can suddenly become rich overnight. Dozens of people have lost everything for every winner who receives the prize. The goal of cryptocurrency is to get in early, get other people to invest, and sell out before everything goes busts. It doesn't actually create value.

The entire system depends on someone else eventually being prepared to pay more for something that may or may not be worthwhile. It's just more gambling, not wise investing. Although some contend that "revolutionary technology" underpins cryptocurrencies, after over a decade, the majority of the market is still based on speculation. On the other hand, self-proclaimed "experts," influencers, and celebrities sell cryptocurrency to their followers in the hope that they will profit while their followers lose.

                                 Figure 1 (modern burglar)

One of the pillars supporting cryptocurrencies is misinformation. It is common for new coins and projects to emerge with revolutionary ideas that never come to pass. Even well-known cryptocurrencies like Bitcoin and Ethereum have significant drawbacks, including sluggish transaction times, exorbitant fees, and price volatility that makes them unsuitable for daily use. However, because acknowledging their shortcomings would undermine the system as a whole, enthusiasts reject their existence.

Moreover, cryptocurrency is a haven for fraud and criminal activity due to its lack of regulation. Investors have lost billions of dollars as a result of scams like exchange collapses, rug pulls, and Ponzi schemes. Fraudsters can easily move on to their next scam without government oversight, and victims have few options. The legal gray area in which cryptocurrency operates permits bad actors to flourish, in contrast to traditional banking institutions that have consumer protections in place.

The inherent volatility of cryptocurrency renders it an untrustworthy store of value, even in cases where projects make claims to be authentic. Cryptocurrencies are totally dependent on market speculation, in contrast to traditional currencies, which are supported by governments and central banks. The average person cannot use cryptocurrency as a stable financial tool because prices fluctuate greatly in response to panic sell-offs, billionaire endorsements, and social media trends. A single tweet or a rumor about a government regulation shouldn't be enough to cause any legitimate currency to suddenly lose half of its value.

In the end, cryptocurrency has fallen short of expectations. Although it was intended to be a decentralized substitute for traditional finance, it has instead left many people in financial ruin and produced a whole new class of financial elites. Despite its claims of security, its vulnerabilities have been exposed by numerous hacks and scams. Fundamentally, cryptocurrency is just another financial bubble that is about to pop; it is not a revolution.