Frauds and scams are the order of the day and we can all be victims of them. Do you know how you can spot a scam before you end up losing money? The most effective 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. This has caused the government ban bitcoin as a thought because of this scam.
Every time bitcoin hear about, it is almost immediately that people associate the use and handling of these cryptocurrencies with fraud.
It can consider the perfect space for Ponzi scheme experts, as most people have learned about cryptocurrency investments and the vast fortunes they have generated in a relatively short time.
What should we consider before investing in cryptocurrencies?
When a person wants to invest in cryptocurrencies taking into account such high volatility rates, it is essential to be informed and prepared correctly before starting to place the funds to obtain the expected profits somehow. Still, it is necessary not to fall into the orientations of the scammers waiting for the beginner bitcoin users to collapse and thus be able to take advantage and get the best out of the future victim.
Decisions to invest in the active crypto market must do instruct, 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 does not come from smart investments. Most of it comes from later participants who gave their money to this person or company.
Virtual currencies (BITCOIN) appeared in the financial market for the year 2009 and the initial concerns focused on the illicit threat of anonymous users who appear out of nowhere, building a global network of exchange of said digital currencies and where all the operations that are they register 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 in its wake an EXORBITANT AMOUNT OF APPLICATIONS, tools, and strategies to carry out all operations in the crypto-asset market and digital currencies can be finalized.
Undoubtedly a traditional economic and financial world is upside down, in which the base of operations is backed and guaranteed by financial institutions as well as by the gold reserves or the value of the legal tender currencies in the world.
Why Bitcoin emerged?
All this traditional scheme is threatened and revolutionized with the creation of BITCOIN and the generation of money that it brings with the execution of exchange operations where no entity can be an intermediary nor governments have this capacity, it arises as a response to a need of society to take control of their finances and that only each one of the users is responsible for their capital and the investment decisions that they consider.
At this point in the game where a large number of 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 their 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 aptitude as a cryptocurrency, but also as the digital currency of the future, where not only digital exchanges of said currency are carried out but also endless purchase and sale operations of crypto assets that allow not only economic leaders, but also ordinary people to invest their capital wisely and of course at their own risk.
That is why every day that passes 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, children now know more about technology than we at our ages can know, the digital age is NOW and it is up to each one to adapt and take advantage of all these resources or simply staying in the traditional era where the most dangerous thing is that sooner rather than later this new economic model will disappear and take over.