I have talked a lot about coins that I love, now let’s talk about coins that I dislike and I would stay as far away from them as possible. In my opinion, and not just my opinion, but the entire community probably thinks that these coins are either scams, or at the bare minimum untrustworthy and being promoted deceptively to misguide or sabotage the cryptocurrency movement.
1) Bitconnect
It’s allegedly a ponzi scheme. It went up to 270$ and now it crashed down to 15$. Smells like a massive scam. It was promoted as a get rich quick scheme in many places. Reportedly you could buy “investment packages” just like on these bitcoin doublers, in the past, but looks like they have redesigned the website since then. I don’t know exactly the mechanics of it, but several people have reported it to be a ponzi scheme. For me it looks very untrustworthy, so I would not use it.
2) Tether
It’s like a dollar proxy or substitute, and the financial regulators really don’t like tokens representing the USD. It could go down just like Liberty Reserve did:
But it gets worse, several people have reported that it’s actually in hyperinflation mode as it seems like the developers are allegedly issuing billions of coins out of thin air, if that is the case then it looks like a massive scam:
- https://www.reddit.com/r/btc/comments/7sed2u/tether_is_at_it_again_only_100000000_this_time
- https://np.reddit.com/r/Buttcoin/comments/7sh3xw/orders_to_sell_usdt_starting_to_seriously
3) Ripple
Reportedly it’s not even a cryptocurrency, it’s just an online database with full KYC. If that is the case then what is the difference between that and an online bank account?
It seems like they are just riding the “blockchain wave” but without any blockchain, just like Corbettreport explained in one of his videos.
Basically it looks like just a Bank Account, permission-based and full KYC. You can’t even mine it, reportedly the maintainer has total control over the supply, so you might as well just open a Bank Account.
Also it looks like they have designed this coins for the Banks, and that is fine, but then why the hell is this 3rd ranked in the cryptocurrency space if it’s not for general users?
I’d not put my money in it, plus the regulatory environment is also not clear here.
4) Central Bank Coins
Several Central Banks are planning to launch their own currency. If you think fractional reserve banking with 1% reserve rate is a scam….
Then wait to see a fractional reserve system with 0% reserve rate and printing “cryptocurrency” by infinite amounts by a central authority.
Of course this “cryptocurrency” won’t really be a cryptocurrency, it will just be a database ledger with full KYC of course. They might integrate mining and the encryption aspects, but rest assured the account creation will only be possible with KYC, and not permissionless like real cryptocurrencies.
Of course they want to create their own crypto, they are literally addicted to hyperinflation, and perhaps that is what they want. Infinite rehypothecation of worthless debt-derivatives. A massive endless ponzi scheme backed by hyperinflation.
Sources:
https://pixabay.com
https://www.pexels.com