The first notion of cryptocurrency was sketched in 1998, and back in 2009, the concept became a reality with bitcoin. Since then, many cryptocurrencies and related services have appeared on the market, and not all of them have proven a good investment. A recent article mentions the latest fraud involving crypto, Bitcoiin2gen (B2g). Yesterday, the Minneapolis Federal Reserve President and chief executive, Neel Kashkari, called the crypto market a fraud that has nothing more than hype and confusion to offer.
The 2020 Pacific Northwest Economic regional Summit
Kashkari declared that the crypto market is ‘95% a fraud’ during the Pacific Northwest Economic Regional Annual Summit. The 30th summit was postponed for this year due to the Covid-19 pandemic and it is being held in Big Sky Montana. Tomorrow is the last day of the summit, and it is a hybrid event.
His opinion is based on the fact that anyone can create their cryptocurrency, and it is more hype with no practical usage.
He mentioned that he used to see the crypto market in a more positive light a few years ago, but instead, he noticed how this market is used to fund illegal activities such as prostitution and drugs. Kashkari compared the different laws for creating currency and cryptocurrency. Those who start creating their own currency will get arrested. However, there are no such rules for virtual coins.
The crypto market is still very volatile
According to a Federal Trade Commission report, from October 2020 until May 2021, investors have lost more than $80 million due to frauds involving cryptocurrencies. The report also mentions that most of the victims are in their 20s and 30s. Many are taking advantage of the fact that not many people understand the technology behind cryptocurrency and how these virtual coins work. People are being tricked into investing in coins that are a fraud. It is essential to investigate and ask for help before investing in this market.