Pyramid or financial bubble?
First of all, cryptocurrency attracted attention as a tool of speculation. You can earn on them, and quickly and a lot, but this is exactly what led to confusion and the substitution of concepts. Tell any village worker or factory worker that by buying a ripl or ethereum, you can earn hundreds and thousands of percent per day - you will not be understood and caught that you are a crook. And not because the people of these processions are financially illiterate, not at all - they are used to making money with their work and getting such an easy and quick profit seems to them to be a hoax - such free cheese in a mousetrap.
On the other hand, not every one of us understands the technical side of the existence of cryptocurrency. The fact that like this, being completely invisible and not having a physical form, there can be real money, and even having value, it is extremely difficult to imagine in our material society. Anyway, regardless of whether we have enough understanding and imagination to realize the essence of cryptocurrency, it really is money and not just money, but a ten-mile step into the future, a real financial miracle.
The fact that a crypt is not a financial pyramid is a truth that is recognized by the entire civilized world and I will explain the differences further. I also disagree with the idea that it is a financial bubble, even though many, allegedly authoritative persons, express this point of view.
Cryptocurrency and financial pyramid: what is common?
HYIPS has a special place on my blog, I and my partners actively earn money in them, but everyone who is not in the topic treats such financial instruments scornfully. I will not convince of something and share some secrets of earnings in this article - this is a topic for another conversation and on the blog overdofig articles that will help to know the true essence of financial pyramids. No matter how good I feel about HYIPs, but with them they have nothing in common and the difference between digital money and pyramids is enormous.
• There is nothing at the heart of the HYIP, whereas cryptocurrency is a complex technical system (the HYIPs that impersonate cryptocurrency are not considered).
• The pyramid is just a tool for making money (which may not be the case). In contrast, the crypt is a payment system, a settlement tool, an instrument of investment and speculation (trade).
• Investments in cryptocurrency are interesting because they may fluctuate in price, as there is a high rate volatility. While you do not lose your money in the crypt - the rate falls and grows, and at long distances there is a steady growth. If we talk about the pyramids, then after the scam you go to the unambiguous negative, in the event that you did not have time to get a profit.
• Cryptocurrency is a startup whose development funds can be raised through crowdfunding (for example, in the case of ICO). Nobody will donate funds to the start of the HYIP project; they are entirely the initiative of their owners.
• The pyramid is controlled by a person or a group of persons, whereas the cryptocurrency is completely decentralized.
What is a pyramid? Dummy, which has nothing but beautiful words. Depositors carry their money, inspired by the hope of making a profit, their investments are paid to other participants and this circulation of money continues until the HYIP goes bankrupt or the admin leaps greed. In the case of cryptocurrency, there are no payments from new deposits - this is a whole technology based on mathematical and cryptographic principles, the value of which is built on trust. If we all wake up tomorrow and no one needs bitcoins, then their value will be zero, but as long as the world is interested in such an asset, the cue ball will go to the moon.
Both in the first and in the second case we have space profitability and big risks. But only these two similarities do not make a cryptocurrency pyramid and it is just silly to consider them to be something like that. Such thoughts only speak of ignorance and financial illiteracy, I advise you to get rid of them as soon as possible, and to destroy ignorance with information, which is tons in the network.
Financial bubble and cryptocurrency
A soap or a financial bubble is another misconception that is often addressed to one or another cryptocurrency or all of their varieties at once. In this case, I also do not agree, because such a definition is extremely incorrect to use. Most often, the bubbles in the economy say when they want to designate too inflated price (most often we are talking about stocks of companies). If the price of a particular share is too high, then sooner or later the market situation may be subject to change, which leads to the normalization of the price, that is, in fact, the soap bubble bursts.
Once again I will designate that a cryptocurrency is such a unique phenomenon that it is simply inappropriate to measure it with any concepts familiar in the financial environment. First, how can we determine that the price of a particular coin is inflated if the exchange rate rises from demand? Secondly, who and how can estimate the real value of a coin? No one ever. This is the same thing as trying to weigh the air or catching water with a sieve - such nonsense. For example, many people say that Bitcoin is inflated in price - it’s very interesting what kind of talk will follow when the cryptocurrency will be distributed all over the globe and every inhabitant of the earth will need it. With such a demand, the price of a cryptocurrency can be simply colossal.
Today, every competent user should understand that cryptocurrency is a breakthrough that arose at the exact moment when we needed it. Our life is slowly flowing into the virtual plane and it is quite logical that virtual money has appeared, and it is very likely that the future lies with them. It’s unlikely that their paper counterparts will be able to withstand the competition, and in this unequal battle there will definitely be a victory for cryptocurrencies - unless something more interesting, convenient and progressive will be invented. Summing up the whole article, I want to say that putting an equal sign between the crypt and the HYIPs is a big mistake and I advise you to quickly remove this heresy from the head and start making money on digital money while you have such an opportunity.
Source: https://www.iqmonitor.ru/interesting-to-know/mysli/crypto-piramida.html
