Bitcoin & Co

Ankur Agarwal | Scam opinion (Bitcoin and Crypto legit?)

Ankur Agarwal is an ICO investor and cryptocurrency expert. Ankur shares his views on Scams which takes place due to changes in regulations and other factors.

Crypto Frauds are something which occurs due to Ponzi schemes, Since the launch of Blockchain, there has been a massive indulgence in this technology. Many people gained a lot from this technological innovation. However growing risks and scams associated with cryptocurrency have drawn the wide attention of the government, investors, and owners.

Cryptocurrency Frauds: (How to Avoid?)

One of the visible signs that this particular thing is a scam is an unreasonably high interest. So if somebody comes up to you and they’re from some cryptocurrency assuring 100% guarantee, they are a scam. Actually, it’s not impossible to make a 100% return in a year. But if somebody guarantees it, that’s where you need to be careful.

Look at the top 10 market coins, and none of the coins is asset-backed. Asset-Backed coins are just something that the maker of the coin assures to make people feel better so that they’ll invest in the coin. Why do you need to back your currencies against an asset? The success or failure of your coin should be based on the technology, not on the asset. If you look at the top market cap coins, all of them are based on the technology. You can quickly get to know; How fast is the block time? What can it do? What are the features of the coin?

Don’t go for the coins that are on a private blockchain. What’s the difference between a private blockchain and a database. If you own all the servers for this coin, you can go back and alter it just like a database. The reason why this is a public blockchain is that it is permanent and unless you hard fork, it’s never going to change. So if a company has a private blockchain, where is the trust? How one can know they didn’t alter it.

All of these factors are red flags that a coin is a scam.

• This coin is not listed on the world coin index.

• It is not listed on the coin market cap.

• It is not being traded on any of the exchanges.

• It doesn’t have a wallet.

Closure of a big exchange platform and ban in India:

Zebpay, India’s first and largest cryptocurrency exchange recently discontinued its service. RBI accused them of illegitimate transaction practices. They claimed their process of trading and money protection to be lame. They have also prohibited banks from providing any kind of financial aids to them. These exchanges are just like the stock exchanges. But the concerning factor is that they are not on the stock exchange yet, nor they are federally regulated.

Before its ban, Zebpay reportedly hit Rs 500 crore turnover in less than 2 months. During 2017, the exchange was at its peak performance with 3 lakhs to 4 lakhs users adding up every month. However, after the ban of Zebpay, the officials pacified their users that they could still access the wallet to withdraw their tokens.

One of the Zebpay competitors reported that India is not ready for crypto-to-crypto trading. Moreover, since it’s ban, a handful of crypto exchanges have emerged focusing on peer-to-peer (P2P) trading. However, post-suspension, Zebpay is setting up overseas exchange operations and eyeing to expand globally.

Cryptocurrency Scam: RBI versus Cryptocurrency

Ankur Agarwal, being an Indian origin shares a concern about the current scenario of the crypto market. Cryptocurrency frequently gets a hike in value, but that does not prove that it can be trusted for long-term investment. Due to volatility, it defies all the laws of trading. But when it comes to trust a coin you’re going to invest in, you must have measurable analysis.

The Reserve Bank of India however, has not banned Bitcoin, Etherium and altcoin; nor they could ban in the future. According to the reports, FEMA claimed that it is entirely legit for trade internationally from India on any commodities. We can freely invest as long as the transactions are legal and we pay service tax upon the earnings.

RBI doesn’t like the cryptocurrency regulations. So they have decided to launch their own centralized version of Indian currency, that is digital INR. This digital Indian rupee will be backed by the same technology as of blockchain. The report says that the move was highly influenced due to their failure to regulate the decentralized crypto coins in the right manner.

According to the government of India, these digital coins are not legal tender and a key factor for money laundering. The legal tender is provided only to the INR. Moreover, another investment and exchange commodities like gold are also not under the legal tender. However, with the case of money laundering, it is mandatory for all exchanges to follow KYC rules. The technology of digital asset has just started in India and has a vast scope for it. Assuming the truce between RBI and crypto-exchanges, this technology can make a significant impact on the untouched market.

To connect with Ankur visit: ankuragarwalonline.com or instagram.com/ankuragarwalofficial

Ankur Agarwal is an ICO investor and cryptocurrency expert. Ankur shares his views on Scams which takes place due to changes in regulations and other factors.