The phrase “Be careful, it’s speculative” is becoming old. “Be cautious; it’s gambling,” came next. “Be cautious; it’s a bubble,” was then said. Many experts say that some of the Bitcoin the official platform schemes are fraudulent. It’s a massive pump-and-dump plan, the kind of which the industry has never seen.
In a pump-and-dump scheme, promoters “pump” up an asset’s price to spark a speculative frenzy before “dumping” some of their shares at a higher price. Some cryptocurrencies are also outright scams. 10% of the funds received for initial coin offerings, according to Ernst & Young, have been reported stolen.
It is useful to realize that a bitcoin is completely worthless-
Some cryptocurrencies, like Bitcoin, are not accepted anywhere at all. A cryptocurrency whose value might change by 10% or more on a given day is ineffective as a form of payment, even when it is accepted. Nowadays, many businesses are accepting bitcoin as a valid payment mode. But, still it is not a legal tender and they cannot generate their invoice in BTC.
The extreme price swings of bitcoin also render it unsuitable as a value store. Furthermore, compared to traditional banks and brokers, bitcoin trading exchanges are significantly less dependable and trustworthy.
The Greater Fool idea states that something is only valuable if individuals believe others will purchase it at a higher price.
Some cryptos, like Sweatcoin, which can be…
