CryptoCurrencies are a Scam
“Crypto what?”
That’s what my friend said when I told him I was buying CryptoCurrencies.
“That sounds like some kind of scam to me!”
When I told him my account was up over 200% in a few weeks, he got interested.
“Tell me more about this crypto stuff.”
I explained to him that cryptos and alt coins were just another way to store value. I told him he was probably partially right about the scam stuff also. Some experts suggest as much as 98% of these new currencies could be scams. You can bet on that!
Anytime there is this kind of exuberance and irrationality about anything, there will be scammers and crooks taking advantage of others. It’s the Wild West all over again. But with a lot of risk comes great opportunities too. You have to do your homework and be smart.
“Why would people need this crypto stuff?”
Here are some of the advantages. We live in a different world today.
Security... when you send or receive a payment, it will get there. No one can hijack it. This is the beauty and function of the cryptography and the blockchain.
Decentralized... no geographic borders or banks. You can take it anywhere because you don’t have to actually take anything anywhere. You don’t have to carry a suitcase cash or a bag of gold. There are no banks taking their cut as transaction fees. No assets to seize. This is the block chain at work. It’s mathematics instead of bankers.
Anonymity or privacy... No government agencies are able to spy on your transactions. This is how it should be. Economic freedom is one of our most important rights.
Forgery... it can’t duplicated like paper money. The cryptography and mathematics protects you again
.Controlled supply... central banks can print as much money as they want. This causes inflation and devalues what you own. For example the maximum number of Bitcoins that can ever be mined is 21 million. No inflation. Pure supply and demand at work to insure an inflation free currency.
You can create a currency that has a function. Steemit is a good example of this idea.
“That sounds interesting. Can you show me what to do?”
Sure I said, but remember what I said about the risks. If you are willing to accept them I’ll be happy to help.
“Let’s do it!”.
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STOPThat is a good way to explain it to my friends who ask me what is it.
Thanks
People tend to call anything or idea a scam when they don't understand it. Then, as others join in large numbers, the doubters jump on the bandwagon.
So true. You need to investigate anything new before making a judgement.