The increased proliferation of the internet and smartphones may be a sign of progress, but it has also given rise to a range of cyber crimes and scams. Cryptocurrency is being used as a ‘pawn’ to deal in nefarious activities, and there seems to be no end in sight. Why is it so? And is this new-age digital currency even legitimate?
To begin with, let’s first understand what cryptocurrency really is, and the reason behind its popularity. By definition, it is decentralized digital money that’s based on blockchain technology. Most people may be familiar with Bitcoin and Ethereum — the most popular versions of cryptocurrency — but you may be surprised to know that there exist over 6,000 different forms in circulation.
Another term associated with cryptocurrency is Blockchain. It stores information electronically in a digital format.
What really makes cryptocurrency different from physical currency?
It is the fact that there is no regulatory body that maintains and manages the value of a cryptocurrency. The dealings largely happen through crypto exchanges, which are unregulated. So why is it that people are drawn to this asset class, even if it is so risky? The answer is greed and instant money.
Most of the Ponzi schemes target the middle-class population, who want to live the dream of a luxurious life. These scams crash their dreams and aspirations, and instead dupe them of their hard-earned money. In the bargain, the losers are these people, while the kingpins make…