What's the story with the crypto-cry?

The one huge party that everyone wants to go to. Crypto! The amount of advertisements, YouTube gurus, and Instagram millionaires is simply insane.

Back in 2009, few people who saw drawbacks in current banking systems created cryptocurrency, something that could not be controlled by a single government or the powerful people in the world. No restrictions across the world, governments, and regulatory entities. Bitcoin was the first cryptocurrency to be created. As of December 2021, there are over 8000 cryptocurrencies.

Nearly 2,000 cryptocurrencies have failed and continue to fail, according to reports. There are several reasons for the failure, but many of them are absolute frauds. The reason so many currencies failed is that it is simple to launch a new coin into the market since there are no regulations. Similar to an IPO, an ICO is an initial coin offering that will help to raise funds. Typically let’s say, a individual wants to start a new business sells you the idea and projects the potential of the business, and then gives coin in exchange for the investment you make.

These are fully unregulated, you do not require a banker to do due diligence, nor do you need SEBI clearance. The issue is that when something isn’t controlled, it leads to a lot of fraud, approximately 90% of the IOC have resulted in a scam. The pump and dump types.

The crypto market is very volatile, when something is volatile, it has the potential to make or lose a lot of money. Similarly, we all know that the stock market has a lot of potential for earning money, but we also know how many of them are actually profitable. The volatility can lead to losing money most of the time. When prices are manipulated, traders suffer massive losses due to the high leverage provided.

The crazy four-year rally of bitcoin from $3200 to 41000 dollars today is the reason for crypto sound. Also, with the recent institutional investor interest, you can also find Bitcoin ETFs listed on NYSE. But we need to understand just because something is listed doesn’t mean it’s safe. Everyone is looking at it as an investment rather than a currency.

People make investments in blind faith. The assumption is that they will be able to sell them at a higher price to someone else. However, as compared to stocks, when you invest in a company, you know what the company does and whether it can generate profits or not. But, the only belief in cryptocurrencies is that the price will go up.

Governments across the world are still finding out how to implement laws and regulations for cryptos, while China banned cryptocurrency trading in September last year.

Check out this sharp drop in an hour of Bitcoin and Ethereum in September as news of a Chinese regulatory ban spread on social media.


The Dogecoin spike and collapse, thanks to Elon Musk and the SM trend.

Cryptocurrencies are easy to manipulate. Take a look at this ad, Ayushman says funds are secured, and Bilkul Safe. He may be referring to the platform, but how many people think straight enough to make decisions? People make decisions based on unverified information.

I guess, for any business that involves a high risk of people losing money, it is ethical for businesses not to run ads, and the government should not let them either.

Since this is a hot topic right now, everyone around you starts making predictions or follow so-called experts, but the fact is that no one truly knows what will happen.

Do you believe cryptocurrencies will survive and continue to rise in the coming years?

  • Yes
  • No

0 voters

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Crypto at the moment is like a lottery. Those who want to try their luck out can park a small amount and then see whether it goes to Pluto.

Crypto is just a speculative asset class with corporate backing in many cases. But in the long run cryptos are a problem to nation states and their currencies. So I am not sure how long the government will be willing to give it a free run.

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Amazingly written.

For me, crypto is a perfect example of investing in an asset without knowing how it actually works. There is no true underlying business to base the true value of the coin. With the recent madness, a simple tweet can spike up the price without having anything to worry about in terms of regulators. I would still believe if the spike or even the dip had some strong basis connected to it. Basically, just a token that trades at whatever price people are willing to pay.

Anyway, as long as there is a market and people are crazy about it, I believe this would stay in the market for quite a time.

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This celebrity ads are another problem of misplaced carrot and stick. Regulators require all sorts of restrictions on Financial Advisors , RIA, Sebi registrations, educational incentives etc. But at the same time fail to restrict the celebs who very well may not used the platform once in their lives, or couldn’t explain the underlying they are selling if their lives was dependant on it. When in reality “normal” people are more likely to be influenced these public figures than a financial advisor.

If you create an environment when someone can sell whatever they want and get away with it, well people will do exactly that.

cryptos are scam.

I have no intention to buy even crypto with even 1 rupee.

here we go again, a single tweet raises the value of dogecoin by 25%.

Penny token Bitecoin has zoomed 8,57,63,221 per cent over the past one week, implying that the currency has turned an investment of Rs 1,000 into a mind boggling Rs 85.76 crore in just a week :laughing:

Calling it a casino would be an insult to casino.

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This is what crypto is all about at the moment. A lottery which is one of its kind.

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