Cryptocurrencies are developing and strengthening in the market, but disputes and doubts around still do not give full confidence in their steadfastness. Not everyone believes that cryptocurrency is the future. Many believe that e-currency is a variation of the modern pyramid scheme, a clever scam for divorce. We cannot give a complete refutation of speculation, just as we cannot prove the significance of the cryptocurrency. Our task is to analyze facts, draw conclusions and forecasts. So far, but this is already more than enough to make a decision to invest in a cryptocurrency.

What is the pyramid?

Bitcoin is still growing in value, although not as actively as it was immediately after its appearance. According to the most conservative estimates, there are about $ 200 billion invested in bitcoins on the market. Is the currency related to the Pyramid scam? It’s easy to figure it out if you understand how it works. So, the pyramid is built on the payment of remuneration to investors through the investments of new participants.

The authors of the scheme are doing everything possible to drag as many investors into the pyramid as possible, promise profitable projects, and spray about the absence of risks. It is vital for fraudsters to fuel the pyramid with fresh resources in order to maintain the level of payments to participants. All this is entourage, illusion, dramatization. Investors allegedly make a profit by investing in business development. In fact, there is no business. Dividends are the money of newly arrived participants.

British regulators classify the pyramid as non-viable and even parasitic schemes, when some people live at the expense of others, believe in a business that does not actually exist.

Cryptocurrency: Future or the next pyramid

Pyramid signs

Find out the pyramids simply by the following features:

  • centralized management, when depositors depend on one company, which may disappear or go bankrupt at any time;
  • promises of high payments;
  • the product is of no value;
  • product volumes are not limited;
  • as soon as new participants stop appearing, the project is closed.

If you try on each of the points for cryptocurrency, it turns out that none of it suits her. It turns out that electronic money is not a pyramid? We suggest going through each argument.

E-currency platforms do not have organizers. This means that they do not depend on a specific person or group of people who can embezzle money, disappear, or go bankrupt. The winners are traders who can correctly predict exchange rates or miners who mine coins, ensuring the security of the system.

Nobody promises fabulous payments either. Moreover, no one promises anything in principle. As before, a cryptocurrency is a unit of calculation in the first place and only then a product for investment. At the heart of e-money platforms is open source with access for every interested user.

About the benefits. The cryptocurrency cannot be considered useless. The currency is used for settlements and a number of points ahead of regular money. For example, for cross-border settlements, cryptocurrency is easier and more profitable.

If the community of cryptocurrency owners stops adding new members, the system will not collapse. Holders of electronic currency will still be able to pay in money, but their price will be higher.

What do the experts think?

According to the expert opinion of the IMF director, virtual currencies are our future. It must be accepted, because soon it will be the cryptocurrency that will become the main currency.

Not all experts make such rosy predictions. Many are still inclined to believe that cryptocurrency is a fraudulent, well-veiled scheme for a new currency. Mistrust is caused by the pseudonym of the founder of bitcoin – Satoshi Nakamoto. Nobody knows who it is and how many people are hiding behind this name.

Another distrustful fact is the disproportionately high percentage of income among the founders of the system. So, for example, the same Satoshi Nakamoto was the only miner and millionaire for a long time. With the advent of the coin, mining was easier and more profitable than now, when the reward for each new block is getting smaller. If we draw the analogy with the pyramid, it turns out that the infusions are due to the departure of the system from the old scheme to the new one. As soon as mining ceased to be profitable, new cryptocurrencies appeared.

The CEO of JP Morgan Chase & Co D. Daimon also agrees with the opinion that Bitcoin is a fraud. He believes that currency has no value out of nothing. No less authoritative in the world of finance, the head of Oaktree Capital, G. Marks, doubted the safety of investments in cryptocurrency and even warned clients against these steps, arguing simply: cryptocurrency is nothing more than a good joke or a pyramid. When people come up with a price tag for a product that does not exist and that, in principle, cannot cost anything, it looks like a scam.

Experts are sure that the cryptocurrency has nothing under it. It has no price, and this is the main sign of the pyramid.

Everything that is sold should have a price. For example, stocks. They buy not paper, but a share in a joint-stock company. Bonds – written confirmation of a company or state to pay dividends to their owners. The traditional currency is supervised by the state.

The cryptocurrency is not supported by a central authority. Money is invested in it for two purposes: to make calculations or to make a profit in the future after selling at a higher rate. Moreover, expectations regarding an increase in the price of digital currency are not supported by anything. It’s just hope.

The uncertainty about the stock of virtual currency is also alarming. No one knows exactly how limited it is and whether it is limited in principle. Skeptics are inclined to believe that there are no restrictions, that at any time, if necessary, new projects will be created with an easy modification of the working algorithms.

Scam or the future?

So what is the correct opinion, is it worth believing a virtual coin and, most importantly, is it necessary to invest real money in it with the hope of getting rich in the future? There is no exact answer to this question yet. Investing in a cryptocurrency without 100% confidence in its firmness is a serious risk. It’s pointless to argue with this.

On the other hand, the cryptocurrency is something completely new, perhaps still beyond our understanding. Everyone can create a wallet and use currency without delving into the essence of the mechanism and without thinking about the risks associated primarily with the lack of legal framework for regulating the cryptocurrency.

Despite the uncertainty and obvious risks, the virtual coin as an investment object still attracts everyone who does not mind making money on a change in course. In turn, this fact contributes to the emergence and development of platforms for making money on cryptocurrency.

Ardent fans of digital currency are sure that this monetary system is based on mathematical algorithms for the future. Yes, they work contrary to the rules of the market, but this does not mean that this is a deception.

Instead of a conclusion, let us recall the words of the employee of the Bitcoin Foundation, G. Anderson. He described bitcoin as an experiment and recommended that it be perceived only in this way – promising to change the world, albeit with the risk of complete failure.

TRADE OPTIONS

“General Risk Warning: Binary options and cryptocurrency trading carry a high level of risk and can result in the loss of all your funds.”

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