Cryptocurrencies are a hot-bed for criminal activity so it’s no surprise that the innocent make easy prey.
Fortunately, regulators such as the US Securities and Exchange Commission (SEC) are starting to crack down, and this goes a long way to explain the collapse in value of cryptocurrencies such as bitcoin, which is now down by more than 65 per cent from its December 2017 peak.
Other cryptocurrencies have also suffered some major hacks in recent months, with millions of dollars’ worth of crypto being stolen.
Bitcoin’s early popularity has more to do with the significant media coverage that early bitcoin “investors” received, and the stories of how millions of dollars (note, “real money”) was made.
This led to what many would call an investment bubble.
Speculation, hype and mania led bitcoin to become arguably one of the largest investment bubbles in history.
The fact that many of the investment rationales for bitcoin’s success were lies was missed initially.
Scarcity was one of the many factors peddled, yet today Wikipedia estimates there are more than 1800 cryptocurrencies in existence (as at the end of May 2018), with new versions being created daily.
Eulogy made by Mike Taylor