'Lower Bitcoin Prices are More in Favor for Bad Actors and Ponzi Schemes’
Genesis Mining has grown quickly amidst a rapidly-expanding cloudmining market and is now the SHA and Scrypt mining industry leader. The German-directed, Bermuda-registered corporation offers not only Bitcoin mining contracts but also diversifies its hashing power to “the most promising altcoins” such as Dogecoin and Litecoin. In a follow up to our previous interview back in July of 2014 with the company, we decided to check up on Genesis Mining to see how the suppressed bitcoin price has impacted their operations, the current state of the cloudmining industry, and what is in store for the....
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When the first major bit-heist, Mt. Gox, happened, many in the crypto community might have been forgiven for thinking that it had been but a minor case of arrhythmia. However with the latest incident involving MyCoin, a bitcoin exchange in Hong Kong, it appears that we might soon have a full-scale coronary. There will have to be stronger guarantees for client funds going forward if we are not going to abandon the promise of Bitcoin altogether. MyCoin went belly up a week ago, disappearing with about US$ 387 million, leaving 3,000 clients out in the cold. This latest incident could not have....
A recently published World Bank policy research working paper on Ponzi schemes mentions bitcoin as a "naturally occurring Ponzi", clarifying that it has nothing to do with deliberate Ponzi schemes, as some bitcoin critics have claimed. Kaushik Basu, World Bank economist and author of 'Ponzis: The Science and Mystique of a Class of Financial Frauds' points out that most Ponzis today are not always as obvious as in the past, being far more sophisticated and more difficult to identify. Market-driven bubbles. "The problem stems from the fact that we can have what Robert Shiller calls....
Crypto Ponzi schemes have increased over the past couple of years. This is how to spot them. The crypto world has experienced an increase in Ponzi schemes since 2016 when the market gained mainstream prominence. Many shady investment programs are designed to take advantage of the hype behind cryptocurrency booms to beguile impressionable investors.Ponzi schemes have become rampant in the sector primarily due to the decentralized nature of blockchain technology which enables scammers to sidestep centralized monetary authorities who would otherwise flag or freeze suspicious transactions.The....
Bitcoin was trading lower to start the week, as markets were anticipating the release of U.S. president Biden’s executive order on cryptocurrencies. Ethereum also remained in the red, and continues to track at multi-week lows. Bitcoin Bitcoin prices were almost 12% lower from the same point last week, as prices fell for a sixth straight day on Monday. Following a high of $39,394.44 on Sunday, BTC/USD dropped to a low of $37,358.00 to start the trading week. The move saw BTC near its long-term support against the dollar of $37,200, hitting its lowest level since February 4 in the....
Ponzi scheme: A fraudulent investment operation where the operator, an individual or organization, pays returns to its investors from new capital paid to the operators by new investors, rather than from profit earned by the operator. Many of the under-informed, the under-educated, and the under-control masses have lobbed this parting shot at Bitcoin over the years. People tend to fear things that they don't understand, and will hide behind that fear with blind attacks that sound right, but are just as ignorant, if not more so. Bitcoin clearly does not fall into the definition of a "Ponzi....