You must have heard in your friend circle that someone is investing in the crypto currency like Bitcoin, Dodge coin, Ethereum, Litecoin etc. and it can happen very much that when you are reading this blog you must have also invested in Bitcoin but in my opinion this market is very very risky and can be the one of the biggest financial fraud of the century. Why I am saying like this has a solid base and proof that you will also agree.
Brief History of Cryptocurrency (Bitcoin, Ethereum etc,)
On 31 october 2008 a paper authored by Satoshi Nakamoto titled BITCOIN: A PEER TO PEER ELECTRONIC CASH SYSTEM was posted to a cryptographic mailing list. Nakamoto implemented the bitcoin software as open-source code and released it in January 2009.Nakamoto’s identity remains unknown till now. This is how the birth of first cryptocurrency known as BITCOIN took place.
On 30 JULY 2015 Ehereum was also launched and with this many cryptocurrency came into the market but Bitcoin remained most famous and valuable.
In starting years the value of Bitcoin or any other cryptocurrency was very less or void but as this currency got popularity it’s value touched sky. why this all happened you will known in the coming paragraph
A Long Relationship with crime
The first users of Bitcoin was mostly Black marketers those who wanted to do transaction without showing there identity or hide there black money.
As cryptocurrency got famous terror organisation also started using it for crime purposes like doing transaction to buy weapons and with the passage of time we have seen that Bitcoin and other crypto currencies have become safe heaven for terrorist and illegal hackers.
The most recent Facebook data breach happened in April 2021, when personal data pertaining to 533 million Facebook users was made public, hackers demanded payment in Bitcoin from facebook officials to settle the matter. This shows how much insolvent is there of crime in cryptocurrency.
It Can be the biggest financial fraud of the century
To understand how every physical currency of the world run, you will first of all have to understand that every currency in this world is backed and regulated by the particular government of that country.
For ex- if you have 10 rupee note of India, that means this note is backed by government of India or it has an underlying asset that is backing it like gold or silver. Nowadays most of the currencies are not backed by gold or silver but by the promise of Government of that respected country that it has an value.
On the other hand this is not the case with Bitcoin or any other cryptocurrency. There is no underlying asset or backing of any government on Bitcoin or any other cryptocurrency, so it means there is no real value of Cryptocurrency. It is only running by the sentiments of the traders and people those who think that it can become the currency of future.
Also many governments all around the world have banned cryptocurrency. The first name on this list is CHINA which has banned Bitcoin trading in there country. Some other countries where cryptocurrency is banned are NEPAL,BANGLADESH, MOROCCO,BOLIVIA etc,
One of the biggest reason not to trust cryptocurrency is that there are no international regulation that regulate Bitcoin. Since it is completely unregulated there is no place in this world where you can go if any fraud takes place with you in crypto trading. Some of the biggest crypto scams in history include the OneCoin scam (estimated $25 billion in losses), the BitConnect scam (approximately $4 billion in losses), and the Bitclub Network scam (up to $722 million in losses).
There is no person in this world who knows that who is running this crypto world and how all transaction takes place in cryptocurrency.
High volatility and very risky trading
cryptocurrency is highest volatile trading platform in this world and there are many cases in which people have lost millions of dollars just in seconds by doing cryptotrding. The graph below clearly shows that how much volatile this cryptocurrency is. So in conclusion i can say that the currency which is risky, volatile, has no underlying value and above all no regulation is nothing more than a fraud and if someday the people behind this start exiting there position then it can ruin the life of millions of innocent people those who have invested in bitcoin or any other cryptocurrency and we have seen this fall in 2022 when the value of 1 bitocin reached 17000$ from 64000$ in just few months.
So if you are also planning to invest any money into bitcoin or any other cryptocurrency, please do a proper research and analysis before investing.
There are much better options like Stocks, Bonds, Mutual funds etc..
If you want to learn more about how to start investing or trading in stock market you can visit our previous blogs by just clicking the links given below.
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