Why crypto currencies are nothing but a scam?
Are cryptocurrencies a good investment?
• Cryptocurrencies may go up in value, but many investors see them as mere speculations, not real investments. Reason is simple, Just like real currencies, cryptocurrencies generate no cash flow, so for you to profit, someone has to pay more for the currency than you did.
• That’s what’s called “the greater fool” theory of investment. Contrast that to a well-managed business, which increases its value over time by growing the profitability and cash flow of the operation.
• But a crypto currency like bitcoin don’t have anything to back it, it’s value is created out of thin air. It doesn’t have any value, it’s value is 0. It is currently running just on blind faith, but day is not too far that everything will fall apart.