Why was Cryptocurrency Considered a Scam?
March 12, 2021 (Investorideas.com Newswire) Since the beginning, cryptocurrency has found itself in various controversies doubting its credibility. From the beginning to present, several people have tried to gain profit using this profitable digital currency. However, very few of them could actually comprehend the transparency and safe yet secure working mechanism of cryptocurrency.
Remember the time when everyone could not resist calling cryptocurrency a scam? Things have changed a lot. Being digital money, there's not much to read and understand about cryptocurrency as it's accessible to anyone in a few clicks.
It's high-volatility has always been the major reason people feel hesitant to call it a legit money-making source. Nevertheless, at last, the volatility is what has surged its currency prices and made huge assets for the crypto family. In the early days, people used to be way too particular about making any decision, especially when it comes to money investments and returns.
Regardless of having huge sums of money, losing money for them was a true nightmare and the launch of digital money that they could not control physically was a big no to invest in. This was the main reason why crypto was increasingly being called out as a scam. Here are some more objectives to understand why bitcoin was considered a scam in early times.
- Zero Third-Party Interference
The bank was once a major hub for storing, buying, and selling money. Needless to say, that cryptocurrency is famous for its no third-party interference that makes it a decentralized system and a bit doubtful too.
On the one hand, cryptocurrency allowed its users to do direct peer-peer transactions without paying banks your hard-earned money. This became the major fuel to fire the cryptocurrency's credibility when people used to hear about it.
- Low Prices Bitcoin
The desire to get more always kept the credibility of cryptocurrency at stake. Being a newly launched digital asset, the cryptocurrency had very low price value, especially Ethereum, Ripple X, and Litecoin.
Everything starts small, and the same was with cryptocurrency; the price value of a few cents at the start of every cryptocurrency did not impact people; either they lose or win this amount. However, today, skyrocket prices of cryptocurrency are enough to get investors on their feet and invest all their fortunes in it.
- Low Stability
The high volatility of cryptocurrency is no more new to anyone. As soon as the cryptocurrency started to grow, the prices also grew side by side. This surge in price also influenced the volatility of cryptocurrency and became the trendiest talk of the town in the traditional market.
Many of the cryptocurrencies both reached peaks and stepped down depending on the market trends and statistics. When evaluated by the investors, this instability further strengthened the idea of considering cryptocurrency as a scam.
- Errors and Hackings
Owning an error-free digital currency is nothing else but a fantasy that people are gradually accepting. Like every other digital platform, few errors, minimal hackings, and glitches in controlling these digital currencies were observed.
Not to ignore the fact that every big thing takes time to develop, the same as with cryptocurrency that was tried to be hacked at the time of its establishment. To prevent these errors and glitches, cryptocurrency has made effective secure and protective advancements such as two-factor authentication on entering any crypto account.
It would be biased to call cryptocurrency the perfect money-making source for you. Like every other physical or digital currency, it also comes up with some lacks and downsides that may get in your path to choosing cryptocurrency over anything.
It can many times show you some severe downsides like volatility or hackings, but that does not deny the fact that the most famous cryptocurrency - Bitcoin, has won the hearts of millions of investors today. To know more about it, head on to Yuan Pay App with all the in-depth knowledge and mysterious facts about this crazy bitcoin world.
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