5 Crypto Conspiracy Theories
When there is something new and disruptive that we don’t understand, we look for ways to explain it. No wonder then that the cryptocurrency world is plagued with conspiracy theories. While some sound outright ridiculous, others almost seem believable. Here Blackwell Global, a leader in crypto CFD trading, is looking at some such theories that have been doing the rounds.
1. Who is the Real Satoshi Nakamoto?
This has possibly been the most asked question in the world of cryptocurrencies, with some astounding answers. Among the popular theories, one proposes that Satoshi Nakamoto is actually Nick Szabo, the reclusive American cryptographer, known for his research on cryptocurrencies and digital contracts. Then there is the theory that Bitcoin was actually created by the US NSA or CIA, given the Satoshi Nakamoto loosely translates to “Central Intelligence” in Japanese. But the best conspiracy theory about the identity of the creator of Bitcoin is that the cryptocurrency was the work of artificial intelligent, albeit controlled by a government agency. Of course, why they would need AI to create a cryptocurrency is still unclear!
2. Cryptos are the Brainchild of Large Investors & Media
The hit American series, The Big Bang Theory, had an entire episode on Bitcoin, called The Bitcoin Entanglement. The price of the crypto, which was at $10,000 at the time the episode was aired, surged in the days following the episode. Needless to say, media has a huge impact on crypto prices. Each time there is news about regulation, scams or anything else associated with the crypto world, we see prices move significantly. So, a conspiracy theory that says that cryptos are the result of a coalition between the biggest investors and news channels doesn’t seem so far-fetched, does it? Of course, this theory propounds that this coalition is duping the public and making away with all the invested capital.
3. Snake Oil Salesmen
Somewhat similar to the coalition theory is another one that says that the entire world of cryptos is nothing more than a Ponzi scheme. Blockchain companies and cryptocurrencies, the theory says, are basically created by hackers who are trying to make money. Given that these currencies neither have any intrinsic value nor are backed by a tangible asset means that scams are much easier to perpetrate, without much investment. Unfortunately, with so many scams being brought to light in 2017, this is one theory which might just be true at least for some alt coins.
4. Graphics Card Makers Created Cryptos
Crypto mining requires huge computing power, which in turn is based on graphics cards. So, if cryptos gain popularity and more and more people want to mine them, who else would make the most gains than graphics card manufacturers? And, it isn’t only Bitcoin that is mined using graphics cards, Ethereum, Ripple, Litecoin and more also require graphics cards for mining. So, if the demand for graphics cards continues to grow, manufacturers will profit by raising prices. Therefore, these manufacturers are actively working on raising the prices of mine-able coins to lure in more people to buy graphics cards.
5. The Crypto Ad Ban was a Big Tech Conspiracy
When giants like Facebook, Google and Twitter banned cryptocurrency ads on their platform earlier in 2018, they said it was to protect the public from scams. However, in an interview with Fortune magazine, David Pakman, a partner at Venrock (a venture capital company), said, “It’s just a little bit too convenient for my taste to see a platform ban an entire ecosystem, or an entire market segment, just because they don’t want to spend the time figuring out who the bad ones are.” The theory is that there was an ulterior motive behind the big tech ban, given that blockchain and cryptocurrencies may someday decentralise Internet services, including social media, search and more. And, while some might say that Facebook’s recent reversal of its ban proves this theory wrong, others might feel their stance has been vindicated, since Facebook is now looking at how it can benefit from the decentralised ledger technology.
Ridiculous or not, conspiracy theories abound in the crypto world. But as Bloomberg put it, regardless of whether you believe in “Deep Throat,” “Deep Capture” or “Deep State,” while trading digital currencies, make sure you don’t fall prey to “Deep Foolishness.” And, one way to avoid this is to trade crypto CFDs, which are today considered to be the safest way to gain exposure to digital currencies.
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