HomeOpinion & AnalysisWhy do people still consider cryptocurrency a scam?

Why do people still consider cryptocurrency a scam?

Despite cryptocurrency being around us for so many years, there are still myths and false understandings accompanied by it. From considering it a scam to calling it a huge deep debt hole, choosing cryptocurrency has always been a debatable matter till today. Unlike traditional currency, this digital currency is stored in online wallets that you can’t carry everywhere physically.

Neither you have to reach out to banks or ATMs to process your payments online nor have you to pay hefty transaction fees while sending your digital currency. These features were surprisingly new for people who were gradually stepping towards the digital world and progressing slowly.

In 2009, the first cryptocurrency – bitcoin came into existence by an anonymous mastermind named Satoshi Nakomoto. He introduced the world to this powerful cryptocurrency but didn’t declare the potential of this trillion-dollar cryptocurrency. Primarily, cryptocurrency became prey to several controversies and intriguing mysteries. But soon people got to know about the power this crypto holds and how amazing it can change the lives of millions of people. From buying any cryptocurrency from Bitqt app to selling it off, the whole system is entirely different from how traditional money works. Besides, many other reasons also lead to people consider cryptocurrency a scam.

  • Blockchain technology: 

To simply put, blockchain technology is a decentralized peer-peer distributed ledger that makes the cryptocurrency work. Although it is a very secure and transparent platform but has led to various crypto scams in the past. From misleading you through social media forums to hacking your crypto account, several ways can get your crypto out of the digital pockets they are stored in.

Also, fake apps that buy and sell cryptocurrency are known to be a very common way of crypto scams. Besides, scamming emails, suspicious social media messages, fake calls, and many other smart tactics can steal your cryptocurrency without even letting you know.

  • High-volatility:

The high-volatility of cryptocurrency is no longer a concealed trait of cryptocurrency. Trading virtual currency has comparatively increased chances of losing money than investments like real estate or stock change. While owning cryptocurrency is a wonderful store of value and assets whereas it can be a nightmare in case you lose it all.

In this regard, cryptocurrency has a history of fluctuating price value that can be both a blessing and a nightmare for traders who invest their hard-earned money in it. Therefore, choosing a cryptocurrency that neither offers you promised profitable results nor reduced chances of losing often makes people consider it a scam.

  • Independent source of payment: 

To date, every money we’ve used is fully backed by the government and submits authority to the official legal powers. But, cryptocurrency is not associated with the government of any country and not answerable to any authority for its operations worldwide. As a result, it is clear that the government will not support any crypto activity or its owner in case of any predicament. Such as the shutting down of numerous exchange services in the past have betrayed crypto users by stripping all their cryptocurrency easily. Events like this about massive cryptocurrency scams have influenced the minds of people to believe it as a scam.

  • Crypto jacking: 

Understanding crypto-jacking is not rocket science if you’ve ever researched crypto mining. It is a relatively new yet very popular technique that crypto scammers use to trick their victims. They do this by entering into your computer’s system and scamming your crypto wallet in various ways.

Identifying this can be hard as the whole process of crypto-jacking is done very precisely and involves hacking all your antivirus software. To deal with that, you need to have a keen eye on all your PC’s browser’s extensions and quickly track any suspicious activity that is found.

Conclusion:

On one hand, the cryptocurrency looks very helpful and an extremely advanced source of sending and receiving payments. On the other hand, it became the cause of numerous difficulties in which people found themselves after indulging in cryptocurrency. Whatever the case, investing money into a volatile digital-asset is certainly not a deal of minutes.

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