I think the bigger danger is from groupthink expectation that the coin markets follow a boom-bust on an annual basis due to the Chinese New Year. They see now as a good time to pick up cheap coin from Asia. They expect to be 3x up in the Autumn and to ride a wild ride up next Christmas to come crashing down in the Chinese New Year.
These people believe there are only so many coins and that it is these coins that have value, regardless of how much they are worth in USD. For them it is how well their coin compares to bitcoin that matters. They think they can ride out any crash as they are 'bound' to be 10x up next year as more people start using crypto to store their wealth.
I do not believe that most people giving bad advice on coin are deliberately giving bad advice or aware that their advice is founded on poor information, fear and greed.
In this environment there is a frenzy to get in on the next ICO so scammers don't have to try very hard to scam.
I can see that a bitcoin miner has put together a business model and with that some risk management. They calculate the ROI and hopefully they get the numbers right and profit after paying off the kit.
However, I do not believe most coin 'investors' are doing risk management properly, they are like a herd of naive day traders from the 1990's losing their savings but getting ever more coin, thinking they are up because one of their coins is up against bitcoin.
It is not so much the scammers but the echo chamber and the FOMO that is the problem here.
These people believe there are only so many coins and that it is these coins that have value, regardless of how much they are worth in USD. For them it is how well their coin compares to bitcoin that matters. They think they can ride out any crash as they are 'bound' to be 10x up next year as more people start using crypto to store their wealth.
I do not believe that most people giving bad advice on coin are deliberately giving bad advice or aware that their advice is founded on poor information, fear and greed.
In this environment there is a frenzy to get in on the next ICO so scammers don't have to try very hard to scam.
I can see that a bitcoin miner has put together a business model and with that some risk management. They calculate the ROI and hopefully they get the numbers right and profit after paying off the kit.
However, I do not believe most coin 'investors' are doing risk management properly, they are like a herd of naive day traders from the 1990's losing their savings but getting ever more coin, thinking they are up because one of their coins is up against bitcoin.
It is not so much the scammers but the echo chamber and the FOMO that is the problem here.