I hope you weren’t surprised. I hope you were ready for it. The crypto markets are dead. I have been warning for years that cryptocurrencies are by and large, total scams. People have lost their life savings in the blink of an eye, and regulators have set their sights on the big crypto exchanges. It will be a bloodbath. Let me enumerate some of the reasons why cryptocurrencies are scams.
Crypto is not decentralized
Many enthusiasts claim that cryptocurrencies are decentralized, untraceable and the future of finance without the banks. This is nothing short of complete fiction. If you own cryptocurrency, you either mined it or bought it. Regardless, you require an account on a crypto exchange to transform it into real currency to buy anything.
Crypto exchanges are 100% centralized. They have servers that host accounts connected to wallets you access from your phone or computer. That means they can halt withdrawals anytime. And when that happens, you’re screwed.
Crypto is not backed by anything real
You only need to look to recent examples of crypto exchanges like Celsius who halted withdrawals because of their inability to back withdrawals with real cash. Another exchange, Terra, offered 18% interest for those who kept their cryptocurrencies in their accounts. Yet they still experienced a run on withdrawals that collapsed their alleged Luna Stablecoin.
People holding Luna coins in Terra accounts lost 99% of their value over night. Some of these people have reportedly considered committing suicide because they lost their life savings.
Crypto is dirty money
As reported by Reuters recently, Binance, the biggest crypto exchange in the world is regularly used to launder money made by drug-dealers, gangsters and hackers on the dark web. Crypto has become more mainstream lately but its roots as dark web currency are undeniable.
For years Bitcoin has been the tender of choice to transfer digital coin for human trafficking, drugs, kidneys, and weapons. Indeed, if you want to buy heroine online and have it delivered to your home, all you need is a private browser and a Binance account.