There are a few inconvenient truths when it concerns the topic of Cryptocurrency.

As a renowned voice in the Crypto sphere, I see it as my job to inform all people to the possibilities blockchain and Cryptocurrency enables. To inform and help develop a platform where people can learn about Cryptocurrencies so they might become (early) adapters and better their finance and knowledge.

This implies I must also be a harbringer of bad news.

There is another not so often spoken “dark side” to Cryptocurrency.

Inconvenient truths few dare to speak about or are mostly put on the side.

Here are a few dark secrets concerning Cryptocurrency:

• Despite the high transparency of transactions most coins and tokens have, due to the use of blockchain technology, no ID bound to the persons making the transaction. No further remarks about the transaction are given. This means ANY payment on the blockchain might be linked to the black market and be used for illegal purchases.
• When it concerns Bitcoin, its strongest point is its decentralized nature. HOWEVER, most of the mining power (and mining) takes place in China. While theoretically speaking it still is decentralized, reality shows most of the Bitcoin reserves are situated in China.
• It is a stretch to say ALL Cryptocurrencies are decentralized. In reality, there are but a few who truly are. The most renowned one being Bitcoin (although not to the letter in practice, see previous point). Many Cryptocurrencies are still tied to their developers and the company who created the coins and tokens. This is evidenced by certain coins having no upper “cap”, active involvement of the developers whom might make changes to the blockchain “as to update policies and keep the coins relevant, to fix bugs and increase capacity”. This implies a centralized authority which might have the power to declare the coin void.
• There is the case of the supposed “whales”. Mostly early investors who amassed a ton of coins and are holding on to them to make huge profits in the long run. They greatly influence the market and hold considerable power when it comes valueing and devaluing different Cryptocurrencies.
• Most Cryptocurrencies are located within the wallets of exchanges as people voluntarily and actively transfer them to these exchanges in order to make profit through trading. This gives exchanges considerable power and further undermines the decentralization aspect.
• During the first Crypto-boom (rise in popularity), many hundred of coins “popped-up” trying to cash in on the hype. False projects which promised and claimed to “correct the inherent flaws of Bitcoin like transaction speed and limited cap”. Most of these were cash-grabs who failed. Some got more development later on and stood on their own but haven’t shaken off the false promises (see third point). Other scams are “dead but not burried” as disgruntled investors who made losses continue to promote these dead coins in hopes of a natural price surge and make their money back.
• There are A LOT OF SCAMS going around. The following are an automatic no-go:
  – Bitcoin recovery (impossible)
  – Investment “opportunities” with returns exceeding 30%
  – Automated trading bots
  – Telegram channels where you can buy “for cheap”
  – Online Crypto casinos.

While I still stand behind the original message of “invest ASAP in Crypto” I put this out as a warning to any beginner.

My closing words are those of an advice I have given to numerous people starting their journey in Online Business and Cryptocurrency.

” KNOW WHAT YOU INVEST IN! “

Take care,

Dimitri