Cryptocurrency is a scam

Updated: 9/17/2022

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:

  1. 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.
  2. It is too volatile – It can trade a minimum of up or down 3 plus percent or more on any given day.
  3. 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?
  4. 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.
  5. 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.
  6. 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?
  7. 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?
  8. 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.
Find out why I think physical gold and silver are good investments:

Leave a Reply