The connection between fraudulent behavior and cryptocurrencies has become a lot more apparent over the years. Especially when it comes to fraud and Ponzi schemes, the situation has gotten out of hand in recent years. Even in 2018, one of the bigger pyramid schemes was still active.
Bitcoin’s Ponzi Problem
Any investment opportunity in the world of cryptocurrencies needs to be scrutinized first and foremost. It is evident there are a fair few genuine opportunities on the market today, but any project promising major returns in a short span of time should be ignored. This also applies to programs offering fixed returns on one’s investment, as those rates are simply unsustainable.
In the case of Bitcoin, there have been numerous Ponzi schemes that have collapsed over the years. Some of them still exist to this day, such as OneCoin. Even that major company will eventually crumble, especially because of all the investigations taking place and the growing number of users who have been defrauded.
In the past few years, there have been several major scams to take note of. The first was Bitcoin Savings and Trust. While it sounded like a prominent bank had gotten involved in cryptocurrency,
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