The Promise of Cryptocurrency and breeding ground of scammers

$10,000 investment on Jan 2013 in Bitcoin would have grown to $52 Million by Nov 2021, when the price of Bitcoin hit an all-time high. The compounded Annual Growth Rate is 164%. That means your money almost doubles in around 8 months and compounds. Does it sound too good to be true??

?This is a fact! And that's what scammers use; to entice the greed in you, or the fear in you, to open the key to your hard-earned money. All the scams {Ponzi schemes, pump, and dump, classical pyramid chain (search Cryptoqueen)}, happening in the world have three things in common:

?●?????????Guarantee or promise of a return,?

●?????????Case studies of early investors who had got lucky and?

●?????????the pressure tactic of urgency that numbs the brain, not to think further or beyond the data that is shown to us.?

?These classical schemes are plenty in crypto world as well, once you have fallen to it, you convince your friends and relatives to invest to justify your investment and get a feeling of being social. The scammers are innovators who can restructure the same old story in a different way. In the crypto world there is no police, no agencies, you can’t file a complaint even. The scammers exploit that part of our mind which believe in the good things happening to us.?

?The greed of the people and easy money is what drives the scammers to prepare the schemes that seem to be initially appealing. We all know the emails from an African millionaire prince who needs a bit of help in releasing huge money stuck in the bank. But still, people fall for that scam, because the promise of the return is huge, and we start thinking with “something else” instead of our brains

?The biggest of biggest of the scams happened from 2003 to 2008 under government supervision and saw pension funds of people vanishing in thin air. Big financial institutions in US went bust in a matter of hours. Imagine your “life savings and worth” become nothing in front of your eyes. And what happened to the preparators of this crisis! They all got big bailouts and bonuses. I am not a socialist, nor a pure capitalist.?

?But I wish the system was just.

?Is crypto born from the ingenious mind of a person ( Satoshi Nakamoto)?frustrated due to the unjust treatment by bankers after the 2008 financial crisis? Are governments afraid that the demand for their currency will decrease after crypto becomes mainstream?. There are experts who talk in favor and against Crypto.??

As highlighted in the image above we can’t guess which will be right. People's opinion is based on their interests and situation. Depending on whether you are invested in crypto or if the advent of crypto will bring losses to you, people will make their wishes as their opinion. This may be unethical, but not illegal. Because it is just their opinion.?

We have seen this happening during the 2008 financial crisis. The best credit rating agencies in the world gave AAA ratings to bonds, just before their value became zero. Later in court, they said that it was just their opinion and legally nothing could be done to them.?

?The judge had to finally ask; how do you people sleep in the night!? But who cares, since you are sleeping on top of a pile of money received as a kickback for inflating the rating. The bottom line is that one needs to do your own research (DYOR) to understand if Crypto is something that you can understand or comprehend.

?In continuation of the previous article, we should understand a bit about how the government controls the economy. (My understanding is) They do it by issuing bonds or selling shares of the institutions they have created. Increasing or decreasing the supply of currency in circulation and thereby controlling the interest rate.?Overall, the value of the currency will also depend on the trust in the government and the resourcefulness of people in that country.?

?Are the governments afraid of Crypto? Will they lose control of the economy if the demand for fiat currency goes down and people prefer to transact in Crypto? If that becomes true, people won't buy government-issued bonds or shares. And government can’t print money at their will.

?The interest and investment in the crypto world are increasing day by day. For example, in India, the total value of the stock market is 3.4 Trillion USD with around 60 million retail investors. This is after 146 years since the stock market was first founded in India. In comparison Investment in Crypto is astounding. Around 20 million investors put their money on Crypto in 2021 alone.?

?There are two unicorns already in this field!?

?For its fans, Crypto is a revolutionary new form of currency, with the potential to side-line the banks and national currencies. It can provide banking and credit access for anyone with a mobile phone. And if you get in early, there's the chance to make a fortune.

?Let’s explore further in the next article - “04-Bitcoin a legal tender or Virtual Asset”

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