As cryptocurrencies become more popular and attractive to viewers, they should research and proceed with caution before entering trading and the overall market.
In June 2021, the popular online gaming group FaZe Clan was accused of engaging in a cryptocurrency scam known as “Save the Kids”, which was the name of the promoted cryptocurrency. by team members. As Bitcoin and other cryptocurrencies reach the mainstream, those who want to enter the market need to be very careful and beware of the hype.
This is just one case where an influencer or group of influencers was caught using their position of power to carry out cryptocurrency scams on their impressionable young audience. It can be argued, however, that this is part of a larger issue involving the cryptocurrency as a whole.
Cryptocurrency is a form of online currency found through data mining; it is designed as a counterpoint to the US dollar. It has become very attractive and lucrative thanks to influencers like FaZe Clan and big celebrities like Elon Musk. Any business that allows cryptocurrency as a payment method immediately becomes attractive to customers.
The problem arises with the fact that Bitcoins and other forms of cryptocurrency are extremely volatile in their market value. For a moment, they can be worth thousands. In another moment, the value of Bitcoin can easily drop to almost zero.
People often get into cryptocurrency trading and the point-of-sale market is “booming”, depending on how you look at it. When the aforementioned famous people do what is called a ‘pump and dump’, where influencers inflate the cryptocurrency and then sell it when the value hits a high threshold, resulting in the value falling due to dissipation demand.
There is also the element of cryptocurrency which makes it attractive to criminals. Although there are records of transactions using this currency, they are very separate from the much more efficient records using other world currencies. Many hackers and those who commit ransomware and cyber attacks like to use cryptocurrencies for payments because they are much harder for authorities to track.
Does all of this mean that ordinary people shouldn’t be trying to invest in bitcoin or other cryptocurrencies? Not necessarily. While there are plenty of issues and shady aspects of cryptocurrencies that potential viewers probably don’t know they should be looking into, that doesn’t mean the idea of cryptocurrencies is bad at first glance.
The whole idea of cryptocurrencies grew out of the libertarian idea of putting power in the hands of individuals and not government agencies and regulators. The value has sometimes allowed people to make a lot of money by investing in it. the Washington post pointed out in April of this year that the cryptocurrency market was worth around $ 85 billion.
There are over 8,000 different types of cryptocurrency at the time of this article. Because cryptocurrency allows new types to be built on top of each other, they will only multiply. There will certainly be more of them over time, all with different values and other aspects that set them apart. Some are “meme-coins” like the very popular Dogecoin, which is a very popular cryptocurrency probably because of the popular meme it is named after. Even though it is only a digital coin, so banks don’t attribute any real discernible value to it, its popularity with users has helped make it a formidable form of economy.
Cryptocurrencies are an interesting experiment that has its place in the financial system. If people and spectators want to be part of this experience, that’s fine. But they need to be very careful about when they invest and the buzz surrounding the market as a whole, because what comes across as a very attractive prospect at one point could result in a very big waste of money.
Columns reflect the views of the authors and are not necessarily those of the Editorial Board, The Daily Iowan, or other organizations in which the author may be involved.