01-17-2018, 12:32 PM
(01-17-2018, 12:13 PM)WeezyBengal Wrote: Bitcoin and all cryptos sound sketchy as hell. Im staying far away. Sounds like a matter of time before those markets come crashing down.
The internet and .com bubble were "sketchy" too at first but after the initial collapse of all the pop up companies it now is every day life. The technology behind bitcoin and most cryptos in general is solid and and getting better. You will see block chain and similar technologies used going forward in other avenues of our every day life eventually. Where bitcoin and other cryptos fall apart as a currency is their volatility. You can't have a currency that is so volatile otherwise no one will use it or accept it. It has become more of a wealth container to most which actually damages the use of it in a functional manner.
What made Bitconnect different is they created a coin as an escape plan for their ponzi scheme investing business. They promised people crazy returns on their bitcoins they loaned them because of a "proprietary" trading bot that would use their coins to play the ups and downs in the bitcoin market making everyone money. Well as most can see from that explanation it is the script of basically every ponzi scheme in the world. The coin was simply the way they paid people out from their scam and so by doing that they were able to double dip selling the coins and taking the investments. One red flag you should always look at when dealing in crypto is coins that are "preminned" meaning the company can release them freely into the market, that was the case here. Bitcoin and many other coins require people to mine the coins in order to control the influx of coins into the market. This decentralized process of creating currency is actually one of the tenets of crypto being a good currency in the future.
The reality is there are coins that have tangible uses and are still in line with the original vision of decentralized transaction tools. These are the things I tend to invest in because they have actual used even outside of being every day currency, but many many many coins have no use and are inf act scams. Buyer beware, treat all of them as investments your willing to lose though as an unregulated market can always get sideways quick.
