While the price of bitcoin has come down a bit compared to its peak, it is still very lucrative and it’s not surprising that many out there want to get into it. However it seems that according to a report from Bitwise, many scammers are aware of this and are taking advantage of it by launching various bitcoin scams.In fact according to Bitwise, they found that the majority of bitcoin trading out there in the market today is actually a scam. This is based on an analysis of top 81 crypto exchanges, where it was found that they report an aggregated $6 billion in average daily bitcoin volume, but apparently only $273 million of that is legitimate.
According to Matthew Hougan who heads up research at Bitwise, “People looked at cryptocurrency and said this market is a mess; that’s because they were looking at data that was manipulated. When you cut away the echo chamber of these nonsense numbers, it should be an efficient, well-arbitraged market.”
He also tells CNBC, “The idea that there’s fake volume has been rumored for a long time; we were just the first people to systematically look at which exchanges were delivering real volume.” So what does this mean for investors? Basically it sounds like if you plan on investing into bitcoin trading, you’ll probably need to do some extensive research to ensure that you are not being scammed.
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