10 cruel truths about cryptocurrencies
4 min readTable of Contents
Cryptocurrencies have brought wealth and new opportunities to many people. Many people believe that they have a positive impact on all of humanity. However, even the most amazing things can create problems that are often forgotten or not immediately visible. In this article, we will look at TOP 10 cruel truths about cryptocurrencies.
1. Market manipulation by big players
It’s no secret that the big players, the so-called whales or institutions that hold large numbers of cryptocurrencies – can manipulate the market. Of course, retail investors are happy when Elon Musk is pumping Dogecoin, or MicroStrategy will announce that will buy BTC. Then the price rises. However, the opposite is also true. A typical example is Tesla, which announced that it would no longer accept BTC as currency for its electric cars.
Worst of all, however, are the anonymous whales that manipulate prices so that they cause chaos and panic.
2. Speculators vs crypto enthusiasts
Let’s be honest. 90% of people invest in cryptocurrencies because they expect to make money on them. So not because they believe them or want to use them. Therefore, there are a large number of cryptocurrencies that survive pumps and subsequent falls.
3. Prices that are miles away from reality
Let’s give one example. It’s Dogecoin. Meme coin, which originated as a joke. And it currently ranks among the TOP 10 cryptocurrencies by market capitalization. Yes, it is absolutely absurd. At least at a time when Dogecoin had no use. Today, the situation is slowly changing, but at the time of the greatest scandal surrounding the cryptocurrency, it had no use.
There are a large number of projects that have virtually no interesting features, but their price is much higher than for projects that have real use.
4. Coin that is listed on exchange may not yet be legitimate
Cryptocurrency exchanges earn mainly on trading fees. If a large number of traders trades a coin, the exchange earns significantly. Often, crypto exchanges are not at all interested in the very foundation of the project. And that can be a problem.
5. Some projects benefit new and inexperienced people
It often happens that crypto projects offer new and inexperienced people huge returns. But they forget that they will also publish false or fraudulent information which will deprive you of your savings. The world of cryptocurrencies is literally full of fraudsters, so you need to be careful and check everything.
6. Security
Security is still a huge problem for cryptocurrencies used by skilled hackers. For example, in 2021, only in the first half due to hacker attacks were stolen approximately $ 3 billion.
It is big problem. We therefore recommend using the largest and most well-known exchanges or platforms, whose history is not enriched by large and successful hacker attacks.
7. False news
Be prepared to come across various false news of cryptocurrencies in the media. And it’s natural. People are afraid of new things and mostly react in disbelief. But over time, they will get used to it and change their minds.
Here are some examples:
- Cryptomens are a pyramid
- The mafia uses them
- Cryptocurrencies are useless…
Cryptocurrencies are particularly detrimental to large corporations, banks and governments that control the mainstream media. They will do everything to stop the cryptocurrencies. However, they are not succeeding yet.
8. Hypocrisy
If you’re in the cryptocurrency world, you’ve probably come across it “Global and professional” traders who present themselves only in the best light. They will show you fictional statistics that have nothing to do with reality. They create references from the invented accounts and subsequently deceive people.
But what if the crash comes? Then they suddenly turn their coat, they disappear and you never hear about them again. However, there are also those who, after the failure of one project, create another and so on.
9. Most projects fail
There are a large number of cryptocurrencies and various tokens. However, most end before they begin. Just look at the historical data of the portal CoinMarketCap. Coins that were in the TOP 50 a few years ago can not be found in the top 100 today. It is a natural process that is often ignored.
10. Part of the system
The factors and negatives I have mentioned in the previous points could be consider as part of the system.
There is no need to forget and underestimate them at all. On the positive side, the world of cryptocurrencies is constantly evolving and seems to be improving.
