Why is crypto a scam | The failure of crypto machine?

Usman Zahid
3 min readJan 12, 2023
Image from Newscop

When I say crypto machine, I mean the machine that comprises NFTs, currencies and other scams. “Scams”, how are they scams?

Let me explain

What is crypto?

If you are in crypto or interested in crypto, then ask yourself these questions:

  • What it really is?
  • What is backing the currency?
  • Who is handling it?
  • How it comes into the world?
  • Who decides its value?
  • Why is it secure?

Now heres a fact:

More than 1 in 3 cryptocurrency investors know little to nothing about it, survey finds -CNBC

How people are getting rich then?

This system works in a way that some people get rich, and some most probably suffer. Just look at NFTs, started with 69.3 million first purchase. And then an unstoppable growth, everybody talking about it without knowing what the hell is it. And wasting time.

The reason is that everybody wanted to get rich fast. Which isn't quite achievable. But wait, it is. When a lot of people are going for the same thing and putting all of their stuff at risk, some of them (like big investors etc) get everything. And everybody else just fails.

How bitcoin started

Bitcoin started in 2008 by someone with the name “Satoshi Nakamoto”. With a vision that will get everybody freedom from this “Evil” banking system. So people started having interests in it. Its value rose very high in the covid period and that was when the problem started. People started to learn this new thingy. And as I told earlier, 1/3rd of those didn't have a clue what they were doing. So when a lot of people joined the race, some of those won and the majority lost. It just became the talk of the time. Everybody calling it a revolution, a failed revolution to be correct.

How it rose

When people initially joined in as a hobby, buying 200 or 300 bitcoins just for fun, its value was very unworthy. But when more and more people joined in, its value got uncontrolled, which worked as fuel to fire and gained even more growth, because people were pouring the real currencies into it, thus giving it value. Giving birth to new millionaires (causing even more craze). But the people who were joining in the late group were just benefiting the people who joined earlier.

Did crypto do what it promised

Cryptocurrency was made for the sole purpose of decentralized currency that everybody can use for international uncontrolled transactions. But this came at a cost. For it to be decentralized, every computer on the network was needed to be authenticating every transaction. And for that reason, people would be rewarded (If they do it first), which is called mining. This is where the problem begins. A computer race started, where people started to build mining farms, having hundreds of GPUs, so they can win bitcoin reward. This causes price hike in GPU prices which could have been used for a better purpose. And this mining process is also hazardous for the environment. All the energy bing used for something that can be processed at a very low energy cost, but due to the competition, it wasn't possible.

This is just a short article about my thoughts on crypto and how it is not worth it. Several people made predictions about its failure, and it is failing. The growth it got in the start is not here anymore. So I hope you liked the read. Must comment on your thoughts, Regards.

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Usman Zahid

I write light hearted stories about mix of tech, productivity and improving ones life. I make sure to add value to my content and to your reading time. Follow!