Crypto Ponzi Schemes
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[Synopsis]
This video is about Ponzi schemes, and how cult like psychology is a catalyst for them. The people who argue for cryptocurrencies believe financial institutions, like banks, and governments are bad. Every government from the beginning of time had the right to mint or create money, and they had the right to tax people whether they be subjects or citizens. Taxes are used to maintain the infrastructure of a state/country/nation, provide public safety, provide national defense, and implement policies. The power to tax is what gives fiat currencies its value, people may argue that fiat currencies are pieces of paper backed by nothing. In fact, it is backed by the GDP of a country, taxation, and force. The failure to pay taxes will result in an individual going to prison.
As for financial institutions, like banks, they are heavily regulated by government institutions. Banks cannot seize an individuals account, steal an individuals account, or embezzle money out of an individual's account. This is because of regulations. If the bank you are banking with fails, you are insured up to $250,000 by the FDIC(Federal Deposit Insurance Corporation). In the crypto space, there are no regulations. Is that a good thing? Would going into a country in a state of anarchy be a good thing? Let's say, a country like Somalia, or ISIS controlled Iraq. Going into a very bad neighborhood where there is no police presence. There are a a lot of risks going into places like that, you can robbed, mugged, seriously injured, kidnapped, killed, etc. You can scream from the top of your lungs in a place like that, and no one will help you. The crypto space is like that. If a crypto bank decides to take your money and run, they can if they are based in another country. If they become insolvent and collapse, they might have a way to avoid responsibility by having you sign a document before you join the platform. Not many people read all the fine prints in a terms of service agreement. Even a crypto trading platform based in the U.S.A. called Coinbase has the right to take assets of users if they go into bankruptcy. A traditional bank which is regulated by the government cannot do that.
This issue is all about trust and confidence. The important thing is not to put your trust and confidence in a conman.
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