A pyramid scheme
Some people say that cryptocurrency is a lifeline from God to help them go from a hopeless reality to a happy future. Others warn that it is the Devil calling people to hell for the price of greed. Those who invested in cryptocurrency alternate between the faint light of heaven and heat of hell.
Some say that bitcoin will be traded at 100 million won ($93,765) soon while others predict it will plummet. While many pose as experts, it is hard to know who to trust. In the end, it is a gamble. Making money does not necessarily require cryptocurrency to rise constantly. Theoretically, you can make money by buying when price is falling and selling when it goes up.
But there is a way to distinguish whether someone is trying to push you off the cliff. When someone who doesn’t seem to be a philanthropist lures you into the world of cryptocurrency or cries out “Let’s go!” to the masses, he is likely to be a partner of the Devil.
Let’s be reasonable. Say Mr. A is convinced that not only the blockchain technology but also cryptocurrency will be of huge value in the near future. The best situation for him is to buy as much as cryptocurrency as he can with all the money he has. Since he cannot buy more than the money he has, he would have to use all of his cash available to buy cryptocurrency after taking care of the costs of living. Since Mr. A wants to buy maximum amount of cryptocurrency within his capacity, it is better for him when the price is low. The cryptocurrency will be traded at a lower price when other people have little interest. When cryptocurrency trading sites indicate that the prices are falling, he should pray for a further drop. He should silently thank those who warn about a cryptocurrency crash.
However, reality is strange. Many speak of a rosy future for cryptocurrency, and a considerable number of them have a share in a related business. Some hold investment info sessions while others boast that they made big money and that people should not hesitate and advise others to join.
Unless these people are altruistic or extremely dumb, they are likely to be part of a pyramid scheme, hoping to fill their pockets with money from late entries rather than investing in the future value of cryptocurrency.
JoongAng Ilbo, Jan. 27, Page 26
*The author is an editorial writer of the JoongAng Ilbo.
with the Korea JoongAng Daily
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