It
seems to me that Americans are especially susceptible to scams these days. Two
that come to mind are cryptocurrency and NFTs.
I have a written
against crypto currencies many times in the past. My first big problem with
them is that in a time of global warming and climate change, cryptocurrencies require huge, warehouses of computers, using enormous amounts of energy in
order to make the system work. Most electrical power comes from fossil fuels
which are major contributors to our climate crises. There is no need for any of
this. Dollars and banks work just fine.
My second big problem
with crypto currencies is that it is the preferred currency for drug cartels,
money launderers, and criminals all around the world. Why? Because there is no
government regulation looking at what is going on, and criminals love that, of
course.
And now we see a third
major reason to distrust cryptocurrencies, and it is that without regulation,
without a government oversight, cryptocurrencies become natural vehicles for
Ponzi Schemes. The FTX scam stole nearly $4 billion from investors – better
thought of as victims. This Ponzi Scheme apparently dwarfs the previous record
holder, Bernie Madoff, for evil. I personally have been the victim of a real
estate Ponzi Scheme and I’m more sensitive than most to the terrible assault
that these kinds of crimes are.
And then there are
NFTs – non-fungible tokens. Apparently these also use Blockchain, so my problem
with them starts with environmental damage caused by extraordinary needs for
electrical power. And we recently had the former president offer a series of
NFT “cards” available for $99 each. Having this lifelong criminal use NFTs as a
way to scam his gullible cult is reason enough to be suspicious of their
nature. Apparently his sale was quite successful, and does that mean that
thousands of cult members paid out this money, or does it mean this was simply
a way for him to get a hostile foreign power like China, Russia, or Saudi
Arabia to give him vast sums of money?
We live in a time of
great economic turmoil. So I suppose it is natural that scams and thieves come
with the territory.
I believe in normal
investments, using normal money, The United States dollar with government
rules, regulations, audits, and oversight.