Unsecure Cryptocurrency Scams Can Be Considered Part of a Pyramid Scheme

 


Cryptocurrencies are not secured by any underlying cash flow and were "particularly intended to escape the regulated financial system."

We have also seen that cryptocurrencies are not amenable to definition as money, asset, or commodity; they have no underlying cash flows, no intrinsic value; and that they are equivalent to Ponzi schemes, if not worse," says the author. Bitcoin and other cryptocurrencies have provided spectacular returns as a store of value, but so did tulips in the 17th century Netherlands. 

Cryptocurrencies resemble a speculative or gambling contract that functions similarly to a Ponzi scheme. Indeed, from a social standpoint, the original Ponzi scheme devised by Charles Ponzi in 1920 has been claimed to be superior to cryptocurrencies. Cryptocurrencies, he said, have the potential to "wreck" the currency system, the monetary authority, the banking system, and the government's overall ability to oversee the economy.

Additionally, industry experts - Chargebacking have outlined - through numerous cases - that the economic state worldwide is at risk due to the rapid rise in cryptocurrency scams. Their professional analysts have gathered primary information while aiding individuals in recovering funds from crypto-related scams, and all of it points to an escalation in crypto scams as a pyramid scheme, but it is not impossible to counter if you partner with Chargebacking

The Economic Health of The World is At Stake Yet Again!

They jeopardize a country's financial sovereignty and expose it to strategic manipulation by private corporations that create these currencies or governments that control them. Market manipulation underpins all cryptocurrency and the business as a whole, without which it would be impossible to operate at scale.

The argument I have worked on should not come as a shock to anyone who knows how cryptocurrency works. At their heart, blockchains are nothing more than append-only spreadsheets shared via decentralized "peer-to-peer" networks, similar to those used to share pirated data. As a result, users can conduct direct online transactions with one another, just as if they were exchanging cash.

This, we're informed, is a game-changer. However, conducting unmediated online transactions in a trustless environment comes with a price. Generally, already verified transactions cannot be removed or changed on cryptocurrency blockchains. The information is unchangeable. Updates are made by connecting a fresh "block" of transaction data to the existing blockchain.

Ponzi schemes that target large financial institutions, banks, elite institutions, and other rich investors are common. Cryptocurrency, on the other hand, is the common man's Ponzi scheme. People treat cryptocurrencies as an investment strategy because they are too volatile to be utilized as a currency. The issue is that in order to get real money out of the system, you need to locate someone ready to buy the tokens you have. And this will only happen if they believe they will be able to sell them to someone who will pay much more for them. The list goes on and on.

If it becomes difficult to find people ready to acquire tokens solely on the promise that they would increase in value in the future, the entire plan may come crashing down, with the value of all tokens falling to zero. We would be assisting our users in what is at best a gamble and, at worst, a swindle if we created our own coin or supported cryptocurrency-related functionality in the browser.

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