Association Of Cryptocurriences With The Ponzi Model

Association Of Cryptocurriences With The Ponzi Model

Written by Olivia, In Crypto, Published On
January 16, 2023
, 104 Views
Last modified on January 26th, 2023

Frauds and scams are the order of the day, and we can all be victims. But do you know how you can spot a scam before you end up losing money? The most helpful thing is to be INFORMED. For this reason, in this article, we present one of the most notorious frauds in the world of finance: the Ponzi scheme, so that you can, through your criteria, compare it with the bitcoin market. To get started with trading cryptos, visit the official Website.

Whenever they hear about bitcoin, people immediately associate the use and handling of these cryptocurrencies with fraud.

It is the perfect space for Ponzi scheme experts, as most people have learned about cryptocurrency investing and the vast fortunes it has generated in a relatively short time.

What should we take into account before investing in cryptocurrencies?

Cryptocurriences

When a person wants to invest in cryptocurrencies considering such high volatility rates, it is essential to be informed and prepared before placing the funds to obtain the expected profits.

Even so, it is necessary not to fall for the orientations of scammers who hope that beginner bitcoin users will collapse to take advantage and get the best out of the future victim.

Decisions to invest in the active crypto market must be informed, knowing the technology that supports them, considering the possible utility, the level of commitment, and investment, among many other elements.

What is the origin of the money received when investing in bitcoin?

However, the money you receive usually comes from something other than smart investments. Most of it comes from subsequent entrants who gave their money to this person or company.

Virtual currencies (BITCOIN) appeared on the financial market in 2009. Initial concerns centered on the illicit threat of anonymous users arising out of nowhere, building a global exchange network for such digital currencies, and where all transactions are carried out, operations that are carried out register that they are in a digital underworld.

Doubts and fears accompany BITCOIN

Great doubts and fears accompany the emergence of this digital currency that today represents the future of financial transactions in the world, creating an excessive number of applications, tools, and strategies to carry out all operations in the crypto active and digital coins market can be finalized.

Undoubtedly, a traditional economic and financial world is turned upside down. Nevertheless, the base of operations is backed and guaranteed as much by financial institutions as by gold reserves or the value of legal tender currencies worldwide.

Why did Bitcoin emerge?

All these traditional schemes are threatened and revolutionized with the creation of BITCOIN and the generation of money that carries out exchange operations where no entity can be an intermediary or governments have this capacity; it arises in response to a need of society to take control of their finances and that only each of the users is responsible for their capital and the investment decisions they consider.

At this point in the game, where many companies, people, and even governments have endorsed a new economic model that aims to manage capital digitally by leveraging all these operations to cryptocurrencies and its blockchain, it cannot be considered a pyramid or Ponzi scheme.

In recent years, the volatility of the digital market has allowed BITCOIN not only to demonstrate its suitability as a cryptocurrency, but also as the digital currency of the future, where not only digital exchanges of said currency take place, but also endless purchases and sales, crypto asset operations that allow not only economic leaders, but also ordinary people to invest their capital wisely and of course at their own risk.

Conclusions

That is why with each passing day, it is essential to inform ourselves and educate ourselves through technology and all its advances, we are increasingly digitized, and traditional trade and finance systems are at risk because, in some cases, they are considered obsolete.

Information technologies are here to stay, our universe has changed, and children now know more about technology than we can understand at our age; the digital age is now. It is up to each one to adapt and take advantage of all these resources or stay in the classic era where the most dangerous thing is that this new economic model disappears and takes over sooner rather than later.

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