Former PayPal CEO Thinks Bitcoin is a Scam!
It does appear that many people still do not get the concept of Bitcoin, and one such person appears to be the former CEO of PayPal. He has just come out and said Bitcoin is one big scam and wouldn’t advise anybody to invest in it.
Anyone who has used PayPal and has fallen foul of the way they operate would probably have called him and his organization during his tenure there one big scam too, and for a man who has been working in the finance markets he should know better.
Running scared is the best description I can give to some of the older companies and people involved in the finance sector regarding new digital currencies, and it does also appear that many of them still do not have a clue about how they work and operate and what the main appeal of them are.
Whilst it is very true to say there are people involved in the cryptocurrency environment that are out to scam people, the way in which the Bitcoin blockchain and those like it have been designed and structured could never be described as a scam.
Therefore, if you are new to the world of Bitcoin then never be put off investing and buying into it if that is something you do fancy doing, for there are always going to be opportunities for you to get some good return on your investments, if you are aware of the risks too.
What Are the Risks of Cryptocurrencies?
If you fully understand the risks of investing in cryptocurrencies then you will not go far wrong, however if you have never bought or sold digital currencies before then you do need to ensure you are aware of what those risks are.
The one aspect of buying and selling cryptocurrencies that you will always want to have the peace of mind in knowing is that all your holdings of any cryptocurrencies are safe and secure and cannot be stolen by anyone else.
Therefore you will need to set about getting a digital wallet, as it is via a digital wallet that you a access all of the coins and tokens you buy, one thing you should always do however when you open up a new digital wallet is store all of the access information for that wallet somewhere safe and ideally not store those details on your computer.
By doing so no one can access those details by hacking into your computer, and if anything does happen to your computer then you will be able to restore your digital wallet and have full access to all your cryptocurrencies by restoring the wallet onto another device.
Also, it is advisable that you get a standalone digital wallet and one that is not run and operated by a third party such as a digital currency exchange, for that way if that exchange goes down or is unavailable for any reason you still always have access to your digital assets via your standalone wallet.
Risks of Volatility and ICO Investments
The other risks that you are going to be facing with cryptocurrency investments is the volatility of the coins and token you choose to buy, and you only have to look at how Bitcoin for example can drop and grow in value over any given time period to see it is a very volatile cryptocurrency.
However, volatility does mean that there is always the chance you can make money when buying and selling Bitcoin or for that matter any other cryptocurrency, and what you should be aiming to do is buy when the cost price is low and then sell it on when the price is high.
But also keep in mind that there are dozens of brand new coins and tokens being launched each week, and it does appear that when investing in an initial coin offering or token generation event there is always going to be the chance you could make some substantial profits when doing so.
The one thing you do need to do however when you do set about investing in new coins and tokens is to do your homework and ensure that the ones you do buy into are solid and not a simple scam.
Due diligence is just as important tin the cryptocurrency environment as it is in any other forms of investment and therefore you need to full investigate any initial coin offerings or token generation event you do like the look of and are thinking of investing in.