“At What Point Does The Ticking Timebomb Go Off?”
The Crypto Scam Explained…
Introduction
James Jani created a wonderful video and overview of the crypto space in the last few years. He talks about Bitcoin, Ethereum, NFTs, and much more…
Some cryptocurrencies may seem have legitimate use cases, but there are many fraudulent schemes that involve cryptocurrencies and it is important to do thorough research and exercise caution when investing in the crypto market.
So, not all crypto coins are scams?
Think again…
What is a Ponzi scheme?
A Ponzi scheme is a fraudulent investment operation where returns are paid to existing investors from funds contributed by new investors, rather than from profit earned.
The scheme relies on attracting new investors to generate returns for earlier backers, creating a false sense of stability and legitimacy.
The operators of a Ponzi scheme may use high-pressure tactics to lure in new investors and promise unrealistic returns, while also concealing their activities through complex financial arrangements.
Sounds familiar?
Crypto must be different…?
But of course, crypto is not a get rich quick scheme…
The scheme eventually collapses when the operator is unable to recruit enough new investors to pay returns to older ones, or when too many investors attempt to cash out their investments simultaneously.
This eventually happens when early investors cash out their investment. After all, they want to make money too, which is why they invested in the first place.
What does that mean?
A coin is never a legitimate investment regardless of whether you are an early or late investor. It is rather not an investment, but a gamble.
It is an operation that is built on deception and the exploitation of new investors to pay returns to earlier ones. The operator’s objective is to enrich themselves at the expense of others.
The scheme will inevitably collapse when there are not enough new investors to pay returns to existing ones.
Early investors may receive returns for a period of time, but the scheme is not sustainable and those returns are not based on legitimate investments or profits.
Invest in yourself!
Investing in yourself through learning and education is generally a better strategy than relying on luck with speculative investments like cryptocurrencies. It has the highest ROI.
Here are a few reasons why:
- Sustainability: Knowledge and skills that you acquire through learning and education have the potential to provide long-term benefits and stability, whereas the value of cryptocurrencies can be highly volatile and subject to rapid changes.
- Control: When you invest in yourself, you have more control over your own development and future, whereas the value of cryptocurrencies is influenced by factors beyond your control, such as market conditions and regulations.
- Tangible benefits: Learning and education can lead to career advancement, increased earning potential, and personal growth, which can have a tangible impact on your life, whereas the benefits of investing in cryptocurrencies are largely speculative.
Investing in yourself through learning, study, and personal development is a proven way to build a strong foundation for a successful and fulfilling life, while reducing the risk of financial loss.
Instead of trying to make speculative returns, learn more about the technology. Embrace the future of blockchain, web3, and metaverse by reading more about them: (list compiled by Przemek Chojecki)
Buying such books also will give you better book recommendations. You will then have enough to study and learn for the rest of your life!
If you are scared that these topics might be too complex, don’t worry! Learning them will absolutely pay off in the long run. Focus on the complex and gain a deeper understanding of the topics you are sincerely interested about.
Do not try the easy way of gambling with crypto.
Go where the majority won’t:
Learn more about it.
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