The birth of Cryptocurrency has been greeted with mixed feelings. While many see it great opportunities in leveraging technology in making themselves rich, many others have seen it as a pure scam. Since the invention of Bitcoin, the first decentralized cryptocurrency, many individuals have been careful with the information that talks about cryptocurrency both on the online and print media. There are several persons in the world that will never take cryptocurrency as a legitimate invention. To them, cryptocurrency is just a Ponzi scheme. Little wonders, the question “Is cryptocurrency a scam?” has been indexed severally on the internet with huge search queries. Many are yet to get a definite answer on whether cryptocurrency is a scam or not. Though a simple question, its answer is complex as different folks will have different strokes to tell based on their personal experiences or those of loved ones. To help out, we shall look at this question with a thorough analysis. With this, you will have an answer to the question: “Is cryptocurrency a scam?”
Cryptocurrency has gained wide popularity in the world, most especially among many young persons. It is great to acknowledge that cryptocurrency is not a scam. Though there are many cryptocurrency startups spring up, the majority of these companies are legitimate. Many individuals all over the world have profited massively from these legitimate cryptocurrency companies from their initial investment. Yes, persons have made themselves rich with their investment in cryptocurrency companies.
Despite the genuine stories of individuals making it big and enriching themselves with cryptocurrency, there are undoubtedly cases of individuals who have gotten their hands burnt with cryptocurrency. These are cryptocurrency companies that their outright ulterior motive was to scam unsuspecting individuals of their hard earned money. Unfortunately, the fake cryptocurrency companies also rose up fast. They came into existence of scam individuals globally. There are several of them that rose up and within a short time fiddled away while going away with the huge amount of money from the investment of individuals. What they usually do is to come out with an Initial Coin Offering (ICO) with promises that are too good to ignore. Initially, individuals will be made to believe that everything looks fine and legitimate. But as time goes on, they will be greeted with great surprise of their investments being swindled away. Everything will look fine from the onset but later fall out to the amazement of the unsuspecting investors but according to a clearly defined plan by the scam cryptocurrency company. Research shows that there are many of such cryptocurrency startups that have fizzled out into the thin air.
One major reason why cryptocurrency market is prone to scammers is that it is relatively new. As such, the majority of individuals will embrace it without suspense. Also, the hype that accompanies cryptocurrency is much coupled with the technology behind it makes it easy to scam people of their money. Having established the fact that some cryptocurrency companies are shady, it is in your best interest to make proper research before investing into any cryptocurrency to avoid hurts.