Is Crypto Currency a Ponzi Scheme?

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Despite all the hype and speculation surrounding cryptocurrencies, many investors are unaware that they are in fact a Ponzi scheme. Several shady investment programs have taken advantage of the hype around the cryptocurrencies booms, and are beguiling impressionable investors. These programs offer high returns with minimal risk. It is important to be aware of these schemes, which are aimed at wealthy and elite investors.

These schemes are deceptive and often have difficult-to-understand growth strategies. Many of these schemes also remain under the radar of law enforcement.

Some cryptocurrencies work more like a Ponzi scheme than others. One example is the GainBitcoin scheme, which allegedly collected between 385,000 and 600,000 BTC from investors. The scheme was operated by Amit Bhardwaj, who recruited investors from different continents.

Another example of a crypto-based Ponzi scheme is Bitconnect. This scheme was unveiled in 2016. The operators encouraged investors to lock their coins onto the platform.

The platform’s operators claimed monthly yields of up to 120% a year. This is not a realistic figure, as the price can swing by 20% in a single day.

Unlike traditional investments, most cryptos are unregulated. This makes it more difficult to pin down who is in charge of the system. This in turn makes it harder for investors to recover their money.

There are a variety of reasons for a user to sell their coins at a loss. Some users sell because of a change in the price, while others sell at a loss when the price increases.

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