Crypto: The World's Greatest Scam
It is a pseudo-currency that preys on suckers.

Cryptocurrency is a scam powered by the top 1%, and you are the biggest victim.
The cryptocurrency industry was successful in becoming mainstream, but it doesn't change the fact that it is a scam, a fraud, and a reckless investment.
To prove my point, let me tell you a quick story.
The world's first legitimate Ponzi scheme.
Back in 2014, a crafty developer created a cryptocurrency and named it PonziCoin.
The creator of PonziCoin called his experiment the world's first legitimate Ponzi scheme, but that didn't stop him from raising $250,000 within hours and listing the currency on major trading websites such as Coinbase. He later shut down his experiment and warned others from buying into these scams.
The fact that PonziCoin was permitted to appear on Coinbase's website without anyone at the company catching it as a scam is revealing enough.
How did that happen?
The cryptocurrency was supposed to be an alternate system of money built on blockchain technology that can be exchanged from one person to another without going through a bank or a payment processor.
Sound like a dream currency for criminals, fraudsters, and scammers. So, everyone became a victim, including Tom Brady and many others.
I have no desire to exchange money anonymously.
Many people tried to sell me bitcoins, using words such as decentralized, safe, and anonymous. I have no desire to exchange money anonymously with anyone or use a money system that is not transparent.
I don't want to use anything not regulated by a central authority because I believe that anything that is not regulated becomes a playground for wrongdoers, as the story above illustrates.
Cryptocurrency is built on a decentralized financial system without oversight from a bank or government, so there is no way anyone can stop a transaction or flag something that looks suspicious. To make matters worse, it is irreversible. So once you send someone a payment, there is no way for you to get it back, and that's very dangerous because most crypto users use digital wallets, not their legal names, so it is impossible to track down any specific user.
Is Crypto the greatest Ponzi scheme in the world?
So, it depends on who you ask; Cryptocurrencies are either a revolution in the financial world or the greatest Ponzi scheme in the history of humankind.
I believe it is a Ponzi scheme, and the fact that many people believe in it doesn't change the fact that it is a Ponzi scheme. After all, Bernie Madoff convinced many smart, well-educated, successful people to invest in his Ponzi scheme.
Madoff conned investors and regulators at the same time, so do you want me to trust a currency that nobody regulates? Wrong.
Read Madoff's strategy, and the crypto scam becomes obvious.
Madoff was a well-respected financer who convinced thousands of investors to hand over their life savings, falsely promising consistent profits in return.
However, in 2008 he was caught and charged with 11 counts of fraud, perjury, money laundering, and theft. How much did he steal? Madoff embezzled more than $65 billion and went undetected for over 30 years.
Instead of investing his client's money, Madoff employed a split-strike conversion strategy. This strategy required him to deposit new investors' funds in a Chase bank account and use these funds to pay other customers. Overall, he created a $50 billion value from thin air.
However, he went undetected because he made everything look legit. I mean 100% legit. Nobody suspected anything. He was powerful and very connected. He even advised the Securities and Exchange Commission on trading securities. He did everything to make himself seem a legit financier.
When some suspected fraud, he invited the Securities and Exchange Commission to audit him, they failed to discover anything, but they couldn't understand how he was making money.
So, a Ponzi scheme is any scam that generates returns for older investors by acquiring new investors, who are promised a large profit at little to no risk. That's what Bernie Madoff did, and that's what the crypto industry does.
Cryptocurrencies follow a similar model.
So, as long as the scam attracts new investors to pay for the old investors, the fraud will become more valuable.
The moment the hustle stops attracting new investors, it fails. Think of cryptocurrency such as bitcoin, which lost more than 60% of its value as soon it ran out of people to buy it. To make it even worse, major cryptocurrency exchanges declared bankruptcy, such as Core Scientific and FTX.
Financial Times reported that Core Scientific planned to keep operating and producing bitcoin while it hammered out a restructuring deal with its lenders and creditors. So, the company that creates money out of complicated mathematical formulas (thin air) can't survive. So, it declared bankruptcy but wants to continue to produce bitcoins.
Can someone stop this company from duping more people, please?
FTX also declared bankruptcy.
FTX is also a crypto trading platform that was once valued at $32 billion but imploded suddenly and declared bankruptcy last month.
After the bankruptcy, CNBC reported, "The collapse of FTX has shattered investors' confidence as the ripple effects of the company's collapse continue to spread throughout the crypto industry." These two bankruptcies impacted consumers' faith in cryptocurrencies and convinced me that cryptocurrencies are nothing but big scams.
I'm not alone. More and more people are losing confidence in these digital currencies every day. More than 60% of Americans believe investing in digital currency is highly risky — up from 45% in 2021. As a result, by the year-end, most major financial institutions will start calling the industry by its real name: ScamCoin.
Here's how much the value of seven popular cryptocurrencies changed in 2022 in the last six months, Terra: -100%, Solana: -93%, AMP: -93%, Cardano: -80%, Ether: -67%, Bitcoin: -63%, Dogecoin: -55%. They are collapsing, and they are failing to attract new investors. So, now, most smart investors warn against investing in Crypto.
For this reason, these currencies will collapse even more.
Cryptocurrencies are not considered money.
According to the Reserve Bank of Australia, "Cryptocurrencies have no legislated or intrinsic value; they are simply worth what people are willing to pay for them in the market."
So, which makes the crypto industry prone to scams, so companies like Core Scientific and FTX embezzled a lot of money from their users and won't be held accountable.
Currencies, by definition, have many characteristics: durability, portability, divisibility, uniformity, limited supply, and acceptability. Unfortunately, cryptocurrencies lack many of these characteristics.
Big players in the crypto industry don't buy cryptocurrencies to use them as currency. Instead, they bought them to sell them at higher prices, and they did that until they ran out of people willing to pay for this pseudo-currency, so the entire industry collapsed.
This is why I call Crypto: the world's greatest scam.
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