Your Bitcoin Scam 2020 Outlook

Your Bitcoin Scam 2020 Outlook

We have all heard the alleged stories of Bitcoin trading “Gurus” selling their houses and families to finance their Bitcoin scam in 2020.  From 2011 to early 2018, Bitcoin’s multi-thousand percentage increase was the equivalent of what many considered the “Tulip Mania” of the 21st century. A good or service, with little to no utility except unto itself, exploding in value as popularity increases.  Only to fall back to historic lows, some 20 to 25 percent of its maximum value.

Now, CNBC reports that much of this bitcoin trading volume is fraudulent. Spot trading on the unregulated exchanges has been faked. Upwards of 95% of all trading is due to “wash trading” which is buying and selling rapidly in order to drum up interest and new investment. If this were done on a regulated exchange, the SEC would investigate and hand out healthy fines. Fines would be brought to any firm with the capital needed to manipulate a single equity. This would be considered blatant manipulation.  However, in unregulated exchanges, as with all cryptocurrencies, this manipulation goes unfettered.

If you were looking to possibly enter into the realm of cryptocurrency trading, while we would not recommend anything that falls under the “unregulated” umbrella, we recommend only investing money you know you can lose.  You can almost guarantee these speculations in the cryptocurrency market will go against you, quickly, and without forgiveness

In an unregulated market, anything can happen. Back in the golden age of Wall Street, market manipulation was rampant. Even the entire idea of the New York Stock Exchange was originated from a scam. The Buttonwood agreement was an effort by securities dealers to only deal with one another, eliminating auctioneers who had the ability to buy and sell securities on their own.

There be a Bitcoin scam in 2020. I can almost guarantee it. And even though the stock market is regulated, there will always be a bad actor. The best thing you can do for yourself is to find the most heavily regulated market in which to trade. 

Cryptocurrencies ain’t it, fam.

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