The huge party everyone wants to go to. Crypto! The amount of ads, YouTube gurus, and Instagram millionaires is simply insane.
Back in 2009, a few people who saw flaws in the current banking system created cryptocurrency, something that could not be controlled by a single government or the powerful people of the world. No restrictions worldwide, governments, and regulatory entities. Bitcoin was the first cryptocurrency to be created. As of December 2021, there are more than 8000 cryptocurrencies.
According to reports, nearly 2,000 cryptocurrencies have failed and are still failing. There are several reasons for failure, but many of them are absolute scams. The reason many coins fail is that it is easy to launch a new coin into the market due to the lack of regulations. Similar to an initial public offering, an initial coin offering is an initial coin offering that will help raise funds. Typically let’s say an individual who wants to start a new business sells you the idea and showcases the business potential, then gives a coin in return for the investment you make.
These are completely unregulated, do not need a banker to do the due diligence, and do not need a SEBI clearance. The problem is that when something is not controlled it leads to a lot of fraud and almost 90% of the IOC leads to fraud. Types of pumps and discharges.
The cryptocurrency market is very volatile, when something is volatile, it is likely to win or lose a lot of money. Likewise, we all know that the stock market has a lot of potential for making money, but we also know how much of it is actually profitable. Volatility can cause you to lose money most of the time. When the prices are manipulated, the traders incur huge losses due to the high leverage offered.
Bitcoin’s crazy four-year rally from $3,200 to $41,000 today is the reason why crypto has sounded. Also, with the recent institutional investor interest, you can also find Bitcoin ETFs listed on the New York Stock Exchange. But we have to understand that just because something is listed doesn’t mean it’s safe. Everyone views it as an investment, not a currency.
People invest in blind faith. The assumption is that they will be able to sell it at a higher price to someone else. However, compared to stocks, when you invest in a company, you know what the company does and whether or not it can turn a profit. But the only belief in cryptocurrencies is that the price will go up.
Governments around the world are still figuring out how to implement crypto laws and regulations, while China banned cryptocurrency trading in September last year.
Check out this one-hour sharp decline in Bitcoin and Ethereum in September as news of the Chinese regulatory ban spread on social media.
The rise and fall of Dogecoin thanks to Elon Musk and the trend of SM.
Cryptocurrency is easy to manipulate. Take a look at this ad, Ayushman says funds are insured, and Bilkul Safe. He may have been referring to the platform, but how many people think explicitly enough to make decisions? People make decisions based on unverified information.
I think for any business that has a high risk of people losing money, it’s ethical for companies not to run ads, and the government shouldn’t allow them to do that either.
Since this is such a hot topic at the moment everyone around you starts making predictions or following the so-called experts, but the truth is that no one really knows what will happen.
Do you think cryptocurrencies will survive and continue to rise in the coming years?