Cryptocurrency might be the greatest Ponzi scheme of all time

FILE - An advertisement for Bitcoin cryptocurrency is displayed on a street in Hong Kong, on Feb. 17, 2022. The Bank of England warns that recent crypto-asset meltdowns that wiped out more then $2 trillion in value highlight the need for tougher financial regulations. Britain’s central bank said Tuesday, July 5 that the crashes exposed vulnerabilities in the crypto markets reminiscent of previous bouts of financial turmoil. (AP Photo/Kin Cheung, File) ORG XMIT: LLT101

The seemingly limitless innovations that are springing out of information technology have created enormous opportunities for all kinds of predatory behavior uninhibited by social regulation. Cryptocurrencies are one of the leading contestants in this competition. Crypto is a Ponzi scheme. It’s the IT version of what Bernie Madoff did in a mutual fund fraud in New York City in the 1980s and ‘90s, which was the greatest Ponzi scheme of all time − until now.

Crypto coin platforms take in money when people buy the virtual “coins,” and if enough people keep buying them, the value of the coin goes up. In the simple crypto cases, the money just sits there, it’s not invested in any activities that generate income or profit, and people can sell their coins at a profit only if more and more people are still buying the coins.

Source link

Leave a Reply

Your email address will not be published. Required fields are marked *