Investors, who are looking for legitimate investment, should avoid cryptocurrency: expert

Investors, who are looking for legitimate investment, should avoid cryptocurrency: expert

Bitcoin is all the rage as its market price keeps climbing and investors make record profits from it. As everyday investors begin to form investment pools to get into the hot crypto market, industry observers have begun hawking all kinds of new ways to take advantage of the burgeoning market.

Traditional stock market investors, bankers, and economists have long sounded the alarm that the cryptocurrencies like Bitcoin are no more than sophisticated Ponzi schemes. The scary thing about this investment scheme is that most people investing in it now don’t understand or realise how speculative it is in nature. Meaning, Bitcoin and other cryptocurrencies are essentially worthless. Their value is determined by people with an economic interest selling them for the highest price to the hungry investors.

Bitcoin and other crypto tokens are questionable investments for the following reasons:

• Cryptocurrency is not supported by any resources, real estate, services, or goods.

• Cryptocurrency does not contribute to the economy in any way (e.g., employment, taxation, social welfare).

• The investors are getting a string of numbers in exchange for their fiat currency — nothing else.

• For Muslims, 25 per cent of the world’s population, it is debatable whether investing in cryptocurrency is halal or