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When I & nbsp; I wrote first The Great Bitcoin Scam& nbsp; in & nbsp; December 2017, Bitcoin traded at $ 15,433 after falling from its all-time high of $ 19,783 a few days earlier. As I write this article, Bitcoin is now trading at $ 4,359. Quite simply, Bitcoin is in trouble. There are investigations on price manipulationand the use of Bitcoin for payments is down 80% according to Reuters.
The Bitcoin bubbleJay Adkisson
As Bitcoin did in 2018, Bitcoin is the best of a sordid lot. The Web site deadcoins.com it humorously lists hundreds of deceased cryptocurrencies and related investments that have been real scams or just really bad ideas, many of which have attracted billions unsurpassed by investors around the world who are now far less rich.
Whatever else can be said that the cryptocurrency has brought it to fruition, it has been one of the greatest destroyers of wealth in the financial history of mankind. Take, for example, Bitconnect that was launched by this guy to enthusiastic investors and at the end of 2018 it was worth $ 450 – now it is worth $ 0.06 if a buyer can be found.
However, one day hardly anyone would ask me to invest in cryptocurrency because their financial advisor told them they needed "some exposure to cryptocurrencies". My answer is always the same: they need to find another financial advisor, unless the plan has run out of Bitcoin.
According to the retired investment adviser and the cryptocurrency observer Charles Padua, "It is hard to imagine that cryptocurrency is an investment suitable for everyone, except for those who are rich enough to be able to burn wads of money from a bridge and do not get disturbed by it. "
The fact is that cryptocurrency is starting to turn that transition from a bad financial idea into a real scam. Although cryptocurrency is in the best of cases a future doubt, there are still companies seeking venture capital investors "take advantage of the cryptocurrency" and who promise to be the next Apple or Google, even if exactly what they are going to do that will lead to a profit is all but clear.
The largest financial companies have avoided Bitcoin, with Jamie Dimon of JP Morgan Chase call Bitcoin a fraud. But this did not prevent smaller companies from attempting to generate commissions by attracting investors who for the most part do not have the first hint of what they are investing in, but succumb to the predictions of instant riches. Far from being rich enough to burn cash, these investors are much smaller investors who are told, among other things, to use their pension funds for cryptocurrency investments.
There are also forecasts on the performance of investments that make little sense. Take Tom Lee from Fundstrat, who had predicted Bitcoin just a month ago it will hit $ 25,000 by the first of the year. After the most recent price drop, Lee cut his forecast to $ 15,000 – which means that Bitcoin is expected to rise 300% over the next 40 days. One must ask what kind of data & nbsp; experts like Lee rely on making such predictions. In his defense, Lee is not alone: if you want a good laugh, take a look at these crazy predictions for the end of 2018.
Without identifying anyone in particular, suffice it to say that a good number of Bitcoin prognosticators are simply hurling and trying to increase the price of Bitcoin because it is invested in cryptocurrency companies. This is where the scam comes into play. Quite simply, cryptocurrency investors are actively deceived – Jamie Dimon's reference to fraud – to invest in something that does not have a realistic chance of yielding the promised results. In the old days of securities regulation, this was known as "blue sky" sales and it involved laws on government bonds with the same name.
This is tantamount to saying that the securities regulators, both at federal and state level, have disappointed the public opinion by not more actively regulating investments in cryptocurrency, establishing eligibility guidelines for financial companies and pursuing the worst offenders, including those who are denigrating Bitcoin and related investments. At the end of the day, Bitcoin has become nothing but a giant pump-and-dump system and investors should be protected by the scheme just as they would be from a penny stock biotech company whose only existence is a website plus a closet with a telephone in Salt Lake City and a day's promise to get valuable patents.
As usual, the horse is already out of the stable, but this does not mean that investors do not deserve at least a minimum protection from the cryptocurrency, even if the interest decreases in this presumed class of activity.
This article in & nbsp;https://goo.gl/78Zo5g
I have already written about Bitcoin in the following articles:
- The Great Bitcoin Scam (28/12/2017)
- Bitcoin and Cryptocurrency: unsuitable at any speed (4/14/2018)
- Bitcoin, Cryptocurrency and the paradox of government regulation (1/29/2018)
- Because Bitcoin is so volatile (9/2/2018)
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When I first wrote about The Great Bitcoin Scam in December 2017, Bitcoin traded at $ 15,433 after falling from its all-time high of $ 19,783 a few days earlier. As I write this article, Bitcoin is now trading at $ 4,359. Quite simply, Bitcoin is in trouble. There are surveys on price manipulation and the use of Bitcoin for payments is down 80% according to Reuters.
The Bitcoin bubbleJay Adkisson
As Bitcoin did in 2018, Bitcoin is the best of a sordid lot. The website deadcoins.com lists humbly hundreds of deceased cryptocurrencies and related investments that have been real scams or just really bad ideas, many of which have attracted billions unsurpassed by investors around the world who are now far less rich.
Whatever else can be said that the cryptocurrency has brought it to fruition, it has been one of the greatest destroyers of wealth in the financial history of mankind. Take, for example, Bitconnect that was launched by this guy to enthusiastic investors and at the end of 2018 was worth $ 450 – now it is worth $ 0.06 if you can find a buyer.
However, one day hardly anyone would ask me to invest in cryptocurrency because their financial advisor told them they needed "some exposure to cryptocurrencies". My answer is always the same: they need to find another financial advisor, unless the plan has run out of Bitcoin.
According to the retired investment adviser and the cryptocurrency observer Charles Padua, "it is hard to imagine that cryptocurrency is an investment suitable for everyone, except for those who are rich enough to be able to burn money from a bridge and not be anguished by it ".
The fact is that cryptocurrency is starting to turn that transition from a bad financial idea into a real scam. Although cryptocurrency is in the best of cases a future doubt, there are still companies seeking venture capital investors to "take advantage of the cryptocurrency" and who promise to be the next Apple or Google, even if exactly what they do will always be the result in a profit it is all but clear.
The largest financial companies have moved away from Bitcoin, with Jamie Dimon of JP Morgan Chase calling Bitcoin a fraud. But this did not prevent smaller companies from attempting to generate commissions by attracting investors who for the most part do not have the first hint of what they are investing in, but succumb to the predictions of instant riches. Far from being rich enough to burn cash, these investors are much smaller investors who are told, among other things, to use their pension funds to invest in cryptocurrency.
There are also forecasts on the performance of investments that make little sense. Get Tom Lee from Fundstrat, who just a month ago predicted that Bitcoin would hit $ 25,000 by the first of the year. After the most recent price drop, Lee cut his forecast to $ 15,000 – which means that Bitcoin is expected to rise 300% over the next 40 days. One must wonder what kind of data experts like Lee rely on these predictions. In his defense, Lee is not alone: if you want a good laugh, take a look at these crazy predictions by the end of 2018.
Without identifying anyone in particular, suffice it to say that a good number of Bitcoin prognosticators are simply hurling and trying to increase the price of Bitcoin because it is invested in cryptocurrency companies. This is where the scam comes into play. Quite simply, cryptocurrency investors are actively deceived – Jamie Dimon's reference to fraud – to invest in something that does not have a realistic chance of yielding the promised results. In the old days of securities regulation, this was known as the sale of "blue sky" and resulted in laws of government bonds of the same name.
This is tantamount to saying that the securities regulators, both at federal and state level, have disappointed the public by not more actively regulating investments in cryptocurrency, establishing eligibility guidelines for financial companies and pursuing the worst offenders, including those experts who are denigrating Bitcoin and related investments. At the end of the day, Bitcoin has become nothing but a giant pump-and-dump system and investors should be protected by the scheme just as they would be from a penny stock biotech company whose only existence is a website plus a closet with a telephone in Salt Lake City and a day's promise to get valuable patents.
As usual, the horse is already out of the stable, but this does not mean that investors do not deserve at least a minimum protection from the cryptocurrency, even if the interest decreases in this presumed class of activity.
This article on https://goo.gl/78Zo5g
I have already written about Bitcoin in the following articles:
- The Great Bitcoin Scam (12/28/2017)
- Bitcoin and Cryptocurrency: unsuitable at any speed (14/04/2018)
- Bitcoin, Criptovaluta and the paradox of government regulation (29/01/2018)
- Because Bitcoin is so volatile (2/9/2018)
