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In this article, Philip Obin highlights the dangers of investing in cryptocurrencies, arguing that bitcoins are merely a formula, no longer backed by any tangible asset.
Why don't I just invest and work hard to make money instead of investing and doing it myself?
Any cyber web financing scheme that promises more than 24% return on investment (ROI) annually is rarely reported and no longer needs to be criticized, especially when it involves buying and selling with Bitcoins or any other cryptocurrency.
*Don't let pleasure, greed, and the pursuit of short-term money sell you.*
Ask yourself these questions: 1. Are they registered and controlled through some investment or monetary authority? If so, in which country(ies) are they accredited to operate?
2. Where do they invest their funds?
3. How do they manage the funds they share with you?
4. How much do they earn to be able to pay for this excess on a daily, weekly, or monthly basis?
5. Do they have a physical office or a virtual identifier?
6. Do they have real, registered cell phone numbers?
7. Who are your key managers and stakeholders?
eight. What is your legacy in monetary commerce?
9. Go to www.Who.Is/whos/theirwebsite.com to see when the area name was registered and when it will expire.
10. If the name of their area was registered a few months or years ago, but not up to 5 years or at least 3 years ago, they are undoubtedly scammers.
eleven. Does their domain registration have area privacy protection? If so, they are scammers.
12. Is your company covered by any insurance to protect its financing with them?
Each of these funding schemes is personal and operated through Yahoo! Nigerian! Guys who turned their company around from average email scams.
They use cryptocurrency because no cryptocurrency is fully regulated by any authority yet (not even Bitcoin anymore), so they can get away with comfortably with their money.
Investing in cryptocurrencies involves a very high risk, as expenses have been extraordinarily volatile.
Many consultants are skeptical about bitcoin as an investment basically because there's nothing for them to analyze.
Vivek Belgavi, colleague and head of Fintech at PwC, says: “There isn’t a satisfactory ecosystem around bitcoins to allow simple analysts to study it as an investment…”
Bitcoin is neither a commodity nor a currency. The lack of clarity about its origin is a major concern surrounding Bitcoin. In the past, particularly expensive metals like gold, silver, etc., were used as currency. Then came printed coins issued by governments (or critical banks), and these are known as 'fiat currencies'. Even though its proponents claim that cryptocurrency is "mined" using advanced mathematical formulas, they are reluctant to call it a commodity. They also claim that it is not controlled by any government and is therefore 'democratic'.
Therefore, cryptocurrencies do not fall into the 'forex' category. ‘It can also be very dangerous for groups, industry, and Americans to trade or invest in bitcoins, as it is just a component, not backed by any tangible asset, but by pure demand,' says SP Sharma, Chief Economist, PhD, Chamber of Commerce and Business.
Don't make investments if you don't have a clear head. Some international bankers and experts have warned traders against investing in cryptocurrencies because they believe it's nothing more than a bubble that's about to burst. .
Jamie Dimon, CEO of JP Morgan, for example, recently expressed his doubts regarding the price of bitcoins, saying: “It’s worse than tulip bulbs. It hasn’t reached an intelligent conclusion. Someone is going to get killed.”.
Unlike other financing methods, cryptocurrencies do not appear to be regulated by executive bodies or banks. "There is no authority like SEBI that needs to be addressed for the redress of complaints," says Vikram Pandya, Director, Fintech, SP Jain, School of International Business. Sharma agrees: "If we buy something with a credit card and get robbed, we can call the financial institution and ask for compensation.".
What is cryptocurrency? A cryptocurrency (or cryptographic currency) is a digital asset designed to function as a means of using cryptography to facilitate transactions and manage the creation of extra foreign currency devices.[1][2] Cryptocurrencies are labeled as a subset of digital currencies and are also classified as a subset of alternative currencies and digital currencies. Bitcoin, being essentially the most common of them, was created in 2009, and is the first decentralized cryptocurrency. Given that, many cryptocurrencies have since been created.
In the event that you are robbed in a cryptocurrency transaction, or if your bitcoin wallet is hacked and your money is stolen, it is unimaginable to get the funds back, and basically there is no one or authorities to file a report with, despite the fact that you file with security groups, it is always practically impossible to track down cryptocriminals.
This is because opening a cryptocurrency account or wallet doesn't require KYC, so anyone can open an account with just an email address and any identification, and the account can be used in seconds. You can then use as much money as you want, for any business, and then abandon it whenever you want.
As I write this, many illicit monetary flows are happening between Nigeria and Hong Kong, China, and others, even as I urge the Nigerian federal government on CBN to appear to be involved before it gets out of hand.
What these guys are doing is, without a doubt, what I call 'digging a hole to fill a hole and robbing Peter to pay for Paul's company's model variety'.
First, some will win and receive a commission, but eventually it will collapse and people will lose money.
Even before going bankrupt, they continually allow those with little investment to retain income and withdraw their profits and even capital, just to make them believe and have the confidence to invest more.
So, once you're convinced, you generally want to make more investments to earn much more. For example, if you invest N100,000, you'll get up to N150,000 just in earnings @ 5% of daily interest; and if you increase your daily hobby by reinvesting every day, you could earn up to N500,000 in 30 days (including your initial capital).
So naturally, you need to make large investments to make them large as well, but once you make investments with huge funds and are not in a hurry to withdraw, they will allow your account to continue generating income, but you would have provisioned for not being able to make withdrawals.
So, for those who write to them, it perpetually takes them a while to respond, so you'll keep writing and complaining, unless they deactivate your account or shut down their website, in case they've already made enough money.
They are constantly creating new websites and platforms with special identifiers and phone numbers, and they infrequently change their investment plans.
Some even go so far as to register their business name with the business registration authorities, which is convenient to do online nowadays, simply so that investors can trust that they are accurate.
They also hire people online to make a video showing their office with the sign on the wall and the workforce working. They make it so real that you'll rarely know they're scammers.
That's how I received N500,000 in cash and lost funds for one of them and learned the hard way. Later, I followed up with them and realized they were Nigerian Yahoo! guys who had formed an ambitious union and are extremely connected to a strong tax base.
Further investigations revealed that Nigerians lose thousands upon thousands of dollars weekly to these investment schemes, while most of them are ashamed to share their experiences.
So, if you can hear God's voice, I encourage you to flee from them and run as fast as you can, especially if the word *Integrity* means something to you from the day you go to the bottom, everyone you presented or pointed out to the business will hardly believe in you again.
Avoid pyramid and Ponzi schemes that sell small or intangible products or functions.
Gain knowledge about how to work hard and earn your money, and stay away from short-term, get-rich-quick schemes like MMM and Bitcoin mining funding. In reality, there is no such thing as 'Bitcoin mining'.
