Bitcoin and many cryptocurrencies show characteristics of fraudulent investment schemes. Unlike traditional currencies backed by governments or commodities with intrinsic value, Bitcoin relies on new investors buying in to maintain its price.
Like classic Ponzi schemes, Bitcoin relies on attracting new investors to pay returns to earlier investors. The primary way to profit is by selling to someone else at a higher price, not through productive economic activity.
Yes. Bitcoin mining alone consumes as much electricity as some countries. This massive energy consumption contributes to climate change, especially when powered by fossil fuels.
No. Numerous exchanges have been hacked, gone bankrupt, or engaged in fraudulent activities. Users frequently lose all their funds with no recourse or consumer protection.