There are two kinds of economists; those who want to make the rich richer and those who want to make the poor poorer. -José Luis Sampedro.
A former Wall Street financier says he spent a couple of years in jail for fraud, that everything he did is little compared to what is the biggest fraud of all time, to be done with the criptomonedas.
The Internet today has such an influence that the trends that are becoming become fashions and then suddenly, everyone is already dedicated to a particular topic. For example, in the past, when the web started to become very popular, there were lots of portals that promised countless activities: news, chats, discussion forums, etc., but it happened that ".com" became a bubble where many people lost money. Now the topic is the criptomonedas as BitCoin and it turns out that they are leaving an indeterminate amount of sites and companies that already work with this virtual currency.
Jordan Belfort, one of the Wall Street wolves, has warned that "ICO ('virtual currency sales') is the biggest fraud of all time and that it will explode many people in the face". The former financier, who spent nearly two years in jail for fraud and shady financial management, says the Initial Coin Offering (ICO), used to raise money for the criptomonedas, is "far worse than anything previously had been done". Their fears are based on how these currencies differ from the traditional ones.
When someone invests in a company, puts money in it and the profits can be shared easily. With the cryptones, however, there is no mechanism to distribute the gains that can be made, and these gains then cause the value of the cryptones to increase and perhaps even worse, the ICOs are not regulated in the same way as the traditional money.
But beyond that, there are criptomonedas that are probably an entry fraud and you are already talking about the cryptonegment bubble, which will have an ending like the ".com" bubble, where people will lose money and maybe a lot of money.
Belfort explains: "This is the biggest fraud of all time, it is so, but so great the fraud that will explode in the face to many people. It's much worse, but by far, than I've ever done before. "Belfort is not the only one who has talked about the dangers of investing in the criptomonedas. In fact, China has already vetoed the use of ICOs.
Until next FridayRandom.