Cryptocurrency is a scam
Disclaimer: In no way, shape, or form is this financial advice. Invest and/or trade at your own risk.
Eight reasons as to why I believe current cryptocurrencies (including Bitcoin) are a scam/fad:
- Takes up too much power – Roughly speaking, each transaction takes up nearly 1200 kilowatt hours of electricity which could power the average American home for about six weeks.
- It is too volatile – It can trade a minimum of up or down 3 plus percent or more on any given day.
- Those who are technology illiterate (not bashing these people…we all having unique gifts) will have difficulty using it – How about the elderly who are old-school and prefer to use cash over even debit and credit cards?
- Unsafe (there have been large hacks) – Look at the number and size of cryptocurrency hacks. Just recently 325 million USD was stolen from the wormhole cryptocurrency after a GitHub error.
- What happens if you lose your bitcoin wallet and/or forget your password? – You lost your bitcoin wallet and/or your password. Poof…there goes your life savings.
- What if you have fraudulent activity (who do you turn to)? – If you suspect bank fraud or credit card fraud, you have someone to turn to. However, with bitcoin who do you contact as there is no middleman?
- Which coin will be the coin everyone uses (there are too many coins)? – Which coin will it be and won’t the government want to intervene in order to have some control over it?
- Bitcoin basically has no physical presence – I’ve seen at least a few sources saying it has a tangible coin, but overall it appears that it really doesn’t have a physical presence which means you cannot, say, lock it in a safe.