【Don't Trust Anyone: Virtual Currency Unsolved Cases - 3 Things You Must Pay Attention to Before Investing in Cryptocurrencies】

First of all, I think everyone who wants to "invest" in cryptocurrencies or has "invested" should see how this cryptocurrency scam plays out.

You will find that most people enter the market with a FOMO mentality that only sees the benefits but not the risks. When the assets rise, they are very fanatical and even All in, but they have never thought about how many "Ponzi schemes" and "frauds" are behind them. , didn’t see the truth until the cryptocurrency crashed, but mostly too late.

【Plot introduction (no thunderbolt)】

Netflix recently featured a documentary on cryptocurrencies , Don't Trust Anyone: The Virtual Currency Unsolved Case.

A record $250 million in Bitcoin disappeared from QuadrigaCX, Canada’s largest cryptocurrency exchange, and the only CEO who could get it back died mysteriously.

In 2017, the year of Bitcoin summer, BTC went from $1,000 to nearly $20,000. The masses are making money like crazy in the cryptocurrency market, but it is not clear that a "conspiracy theory" is actually happening.

As Bitcoin skyrocketed, many people borrowed at all costs to enter the market. Canada's largest cryptocurrency exchange at the time managed assets of up to 250 million US dollars.

It was not until the beginning of 2018 that Bitcoin began to collapse by more than 60%. Everyone was eager to withdraw the broken Bitcoin, but found that the cash could not be taken out after a month.

Everyone started to panic. At the beginning of 2019, the CEO announced that he died unexpectedly of some acute gastroenteritis in India, and he had the only exchange wallet password, which means that no one could get the money after his death.

So a bunch of people who lost money went online to act as anonymous police and began to investigate (at the time, cryptocurrency was almost impossible to be regulated by government laws).

Various conspiracy theories began to spread, such as the CEO cheated to death and cheated all the money to go abroad, some people said that his wife killed her for money, and some people even said that this incident was involved in a gang money laundering case.

Because of the lack of evidence, and the fact that human nature is very scary when money is involved, I think it's good that this documentary can keep the tense atmosphere going, until the truth is discovered at the end (but I think it may only be temporary. The truth is not necessarily true, always remain suspicious!) -> I recommend everyone to watch~

【in conclusion】

I think this film is a great cautionary tale, and I hope you don't just get carried away by the profits and ignore the risks.

I summarize the three most important points I learned:

1. Grandpa Munger said that investment always looks at risk before reward.

Risk is everywhere. Imagine yourself depositing a large amount of assets and making money on the largest cryptocurrency exchange at the time. Is it possible that you will find out that this is a scam?

Just like the largest Binance or FTX exchange, can you fully believe that it is 100% safe, and there will not be a day when the money will abscond or fail viciously? All these have to be taken into account, right?

In particular, cryptocurrencies are high-risk investments, and it is necessary to take into account that the current laws cannot be fully guaranteed and regulated.

Therefore, "correct capital allocation" and "risk control" are very important. Never gamble with money that will hurt or even go bankrupt. Always think in the opposite direction, thinking about the danger first, then the reward.

2. Ideologies and conspiracy theories are dangerous: keep thinking critically

What goes on and on throughout the film is that when a new piece of evidence emerges, the crowd begins to have new conspiracy theories.

These claims may be simply wrong, after all, the truth has not yet been revealed, but it may have hurt some of the victims of conspiracy theories.

All the information we see on a daily basis must be one-sided, whether it is news, or even papers or textbooks.

When our views are influenced by ideology, it's easy to allow ourselves to make bad decisions. "Be suspicious of anything and always double check!"

3. Don’t go to crowded places: avoid human greed and trust anyone easily

At the end of this plot is actually an ending that I didn't expect, but the conclusion is attributed to people's greed and "badness".

When everyone is frantically crowding into the same place, it means that place is dangerous: too many people make you stupid.

To be a human being, you must maintain good thoughts towards everyone, but at the same time, you must not believe that human nature is inherently good, and you must protect yourself.

【Small idea】

I am still very optimistic about the distributed ledger of the blockchain and the technology of smart contracts. I also believe that NFTs and DAOs can do many things that were difficult to accomplish in the past centralized era, and they can change our lives.

However, in the process of technological innovation, there will be many growth dividends, and when they are seen by illegal or unscrupulous businessmen, there will be many dangers.

Always maintain independent thinking, read more and accumulate common sense, analyze expectations and probability, and protect yourself and the people around you.

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