Cryptocurrency inflation – “pump and dump”
In addition to organic diggers, gold rush attracted various scum, and the new phenomenon of digital currencies attracts numerous groups of cheaters. By definition, acting outside all jurisdictions and relatively anonymously, cryptocurrencies opened up opportunities for them that they could not even dream of. The protocol was open source, everyone could run their own currency, make hype around it, then disappear. Rise and repeat. Less than 1% of all currencies were created with a noble purpose. Of course, many people, attracted by the desire for quick profit, have lost significant resources in these operations.
Currently, an even greater number of cryptocurrencies emerges. Startups become businesses that create “revolutionary” solutions. People buy them without checking any information, a bit like blind ducks. For example, a brand new crypto token promoted and created by a suspicious company. Their website is ugly and they have zero history when you do a background check on them. Their coin operates on a special “distributed version of the blockchain” where everyone making a transaction builds its chains, there are no fees for sending because there is no energetically absorbent “proof of work” needed to operate. Their presentation sheds light on the benefits. A young man speaks 15 minutes, with passion, but you’re still unable to understand how it makes any sort of sense. Blockchain, internet of things, resources, freedom! My router and my car, they will all use blockchain. For what? Not clear yet. The coins were created all at the same time, at the genesis block. What? Does it matter? Just wait for someone to buy them back and make a good buck, that’s the way of these kind of projects. With great marketing team and massive hype, anything is possible. The only change is that the combinators have suits. In most cases, the whole ideology is BS and the product itself resembles a bridge that needs to be sold. However, it doesn’t necessarily mean that bad actors and schemes are the only things to find in crypto world. There is more to cryptocurrencies than meets the eye.
Crypto blessing – the better future
Payments made using cryptocurrencies have many advantages, and it would be hard to look for such in conventional money. They guarantee the possibility of relatively quick payment to any place in the world – without delays during holidays and without any limits. Therefore, they enable greater control over their funds than, for example, traditional transfers or international money transfer services. In comparison to a traditional bank transfer, in *decent* cryptocurrencies, the concept of a trusted third party is limited. Unless the user uses an exchange, which is not recommended due to their centralization, they should be relatively safe and in control of their funds.
Therefore, it is not necessary to use banking institutions and legacy financial sector. The rules governing the system are stored in a computer code and it does become a “law” (code is law). It is possible to change it, but sometimes it is very difficult – it requires the community’s consensus. But that’s a good thing – it brings the benefit of the strict limitations and no one party controls the system. best crypto payment processor
Due to the lack of intermediaries (banks), in most cases you can count on much lower transaction fees. With the so-called Lightning Network, Bitcoin makes it possible to surpass its problems and deliver a second layer solution suitable for mainstream adoption. The security used by cryptocurrencies is virtually impossible to break today, because it would require a gigantic computing power, unattainable even by the most powerful supercomputers. That’s really attractive and the gigantic reason for why cryptocurrencies and their prospects still hold social value, despite the massive dangers hidden in the space.
Investors should be wise and not fall for scams or promises of easy money. But the value of cryptocurrencies remains to be seen and appreciated by enthusiasts and casual users alike. Who knows? In time, the space might become healthy, with better regulations protecting us from scammers, and the world and its economy enjoying the benefits of crypto to the fullest.