– Why you should never invest in cryptocurrencies!
By George C. Georgiou
This blog post was inspired by my personal experiences investing in
either different cryptocurrencies that are supposed to be the next Bitcoin and
end up having a value of 0.00001 or investment opportunities using
cryptocurrencies that promised me as much as 3% daily ROI and then disappeared
into thin air, commonly now known as “rug pulls!”
Cryptocurrencies are digital currencies or virtual tokens that use
cryptography for security. Although they have been hailed as a revolutionary
new way of conducting transactions, they are now losing popularity fast, and
for a good reason.
They are decentralized, which means they are not subject to government
or financial institution control. This makes one of several reasons why you
should never invest in cryptocurrencies.
Secondly, cryptocurrencies can be highly volatile, meaning their
prices can fluctuate wildly, unexpectedly, and for no known reason.
Thirdly, with the emergence of new technologies like blockchain crypto
fraud has increased exponentially. Nowadays, criminals conduct cross-border
transactions or launder money in anonymity and without the fear of being caught
or having their assets frozen by a government or a law enforcement agency.
Fourthly, the combination of all of the above has given ground to
numerous con artists and scammers to use it as their means to deceive us
knowing that they can take our money, never be found, or face justice.
No wonder why cryptocurrencies are the most commonly used payment mechanism in investment scams and fraud.
Between the beginning of 2021 and March 2022, over 46,000 consumers reported cryptocurrency fraud with an estimated of $680 million in losses that year alone. While in the first three months of 2022, another $329 million. (Ref: fool.com)
As long as cryptos are not regulated and are priding because everything is done in anonymity, meaning scammers, con artists, and cyber-criminals cannot be traced then this hype is at its final stages. Bitcoin and most of the other ones started devaluing in April 2022 and haven’t stopped since then and will continue to do so until they are completely worthless. The included graph of the Bitcoin trajectory says it all.
The bottom line and always in my lay opinion is that cryptocurrencies
are so high-risk investments to a degree that is a gamble or even foolish to invest.
Besides, why take unnecessary risks when there are so many other investment opportunities and business ideas that you can start, earn money just as fast, and have your mind at ease? You can get some reliable and profitable business ideas on my post ‘Why is it so important to diversify your income?’
©George C. Georgiou