Cryptocurrency could be the biggest Ponzi scheme of all time

FILE - An advertisement for the cryptocurrency Bitcoin is displayed on a street in Hong Kong, February 17, 2022. The Bank of England warns that the recent collapse of crypto assets that wiped out more than $2 trillion in value underscores the need for tighter financial regulations.  The Bank of England said on Tuesday (July 5) that the declines exposed vulnerabilities in crypto markets reminiscent of previous bouts of financial turmoil.  (AP Photo/Kin Cheung, File) ORG XMIT: LLT101

The seemingly limitless innovations emanating from information technology have created enormous opportunities for all kinds of predatory behavior unfettered by social regulation. Cryptocurrencies are one of the leading contenders in this competition. Crypto is a Ponzi scheme. It’s the IT version of what Bernie Madoff did in the New York mutual fund scam of the 1980s and ’90s, which was the biggest Ponzi scheme of all time – until now.

Crypto coin platforms take money when people buy virtual “coins”, and if enough people keep buying them, the value of the coin increases. In simple crypto cases, money just sits there, not invested in any revenue or profit generating activities, and people can only sell their coins at a profit if more and more people keep buying the coins.

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