What Is This Bitcoin Cycle's Biggest Scam?

[Outhue]

One of the biggest Bitcoin YouTubers, Matthew Kratter from the channel Bitcoin University, recently made a video explaining that this current Bitcoin bull run biggest scam is Bitcoin treasury companies , here  can watch his video in which he explains why
https://www.youtube.com/watch?v=vr8hog1BHAY

How do scammers manage to convince people to invest in their projects?Do you think Bitcoin treasury companies are the biggest scam, or are altcoin scams worse, considering Bitcoin’s dominance is only about 60%?

Hahaha! I saw the title and knew what this was about. I follow Matthew from Bitcoin University, but he's wrong about this. He's a purist who doesn't stray from P2P bitcoin. And today, bitcoin has gone far beyond that, and will go even further. If people only used bitcoin the way Matthew wants them to, it would easily be worth 100 times less.

At first I wanted to put some blame on you about what could be so bad using P2P for Bitcoin transaction, because normally this is the best way to use Bitcoin but I remember that there are some people who don't like doing things like this on their own, if P2P is all that people cares about, Coinbase and other centralised exchanges won't survive this long.

I used to blame people for using centralised exchanges in the past but I later realized that we can't all be the same, banks survived for similar reasons, handling our money into the so claimed better way of keeping them safe, people got used to it and when Bitcoin came they want someone else to always do the same thing for them.

Matt should instead compare BTC with the scams from the altcoin side, it's like comparing a lawful country with a lawless one, ICO and IEO or whatever they are called have stolen billions in dollars, they show their faces to the world and still rob people.

[Smartprofit]

Is the creation of Bitcoin reserves (Bitcoin treasuries) by large companies an outright fraud? In my opinion, this is a difficult question.🤷

I would rather call it a financial experiment. The fact is that Bitcoin is such a complex and multifaceted entity that its true purpose in the financial system of the future world can only be determined by conducting various experiments. At the same time, of course, such experiments can end very badly. However, there is no other way to understand the true nature of Bitcoin. This is an entirely new phenomenon in our world, which can only be studied by trial and error.

In general, this is a more global problem. Previously, the value of any commercial company was determined by its production activities, the benefits it brought to people. Then the emphasis shifted to profit. People everywhere began to believe that the main thing for a commercial organization is to maximize profits, that is, increase revenues and reduce expenses, and the usefulness of the product itself is not so important (after all, there are marketers for this who explain the value of the product to people).

However, over time, everything got even worse.  It is not even the company's profit that has come to the fore, but its capitalization, which directly affects the value of its shares. At the same time, the final product of production, innovations, and so on - all this has become completely unimportant. That is why commercial companies are now accumulating reserves in bitcoins. This is the easiest way to increase the company's capitalization, and at the same time the price of its shares.

Of course, this is an abnormal situation... However, what is left for us, simple crypto enthusiasts? In my opinion, just watch the process and wait for the market to collapse...

[adaseb]

Yes the bitcoin treasury companies which are trying to mimic Microstrategy can be in trouble if there is a massive pullback. However to tell you the truth I dont know exactly how they function and when they would have to liquidate their bitcoin holdings.

From what I understood about Microstrategy, the debt is not due for a while. So even if bitcoin fell short term, they would not have to liquidate their bitcoins to pay their debts. What other companies are doing is somewhat similar.

[Rustam Meraj]

Cryptocurrency scammers convince people to invest in their projects because of their greed and lack of knowledge. In current market some scammers use Bitcoin brand to make their schemes look legitimate promising supercharged way to get more Bitcoin. Other scammers use tactics like promising huge returns and creating sense of urgency and using fake endorsements and also building trust slowly before running.
Both Bitcoin treasury companies and altcoin scams are major issues. According to Matthew Kratter Bitcoin treasury companies are scam because they are like pump and dump scheme where early investors get cheap price and then sell off their shares later causing others to lose money. He believes people should just buy Bitcoin directly. Altcoin scams on is different include things like rug pulls and fraudulent ICOs which have also cost investors huge amounts of money. And Kratter argues that Bitcoin treasury companies are particularly dangerous type of scam because they use trusted Bitcoin name which I think he is saying right.

[milewilda]

Every Bitcoin bull market is followed by a huge wave of scams. Scammers try every possible way to exploit the general public’s lack of understanding of what Bitcoin really is, taking advantage of both ignorance and greed. Bitcoin is too abstract for many people to grasp without knowledge of both economics and some technical understanding.

In every bull run, scammers come up with new and more creative schemes. In the past, we saw ICOs Initial Coin Offerings   such as EOS, ETH, and many others. Then came the “blockchain has other uses beyond money” narrative, which was used to promote countless projects. This was followed by a flood of altcoins claiming to be faster and better than Bitcoin, and later the NFT hype, which lured in masses before collapsing.

One of the biggest Bitcoin YouTubers, Matthew Kratter from the channel Bitcoin University, recently made a video explaining that this current Bitcoin bull run biggest scam is Bitcoin treasury companies , here  can watch his video in which he explains why
https://www.youtube.com/watch?v=vr8hog1BHAY

How do scammers manage to convince people to invest in their projects?Do you think Bitcoin treasury companies are the biggest scam, or are altcoin scams worse, considering Bitcoin’s dominance is only about 60%?

Reasons? Here are my points:

• Lack of knowledge
• Greed- Loves and believes that getting rich overnight is possible
• FOMO
• Gambling approach on investment

Actually it would be normal that we will be able to experience those common newbie mistakes on which these things could possibly happen and this is why its important that you do know at least on what you should gonna do. Its important that you would be that wary into those probabilities at the time that you would be experiencing it out whether it would be that positive or negative. If we are just that fixating ourselves on investing into Bitcoin and going for long term then you wouldnt be that trying out yourself to look for another alternative. Yes, we can be able to make more money and could possibly be able to obtain or gain that much more higher multiplier specially when you are dealing up with low caps or meme coins on which this is far more riskier rather than on investing into Bitcoin itself or with some top established altcoins in the market.

Scam would be usually be talking about those scam pre-sales or even with those projects. So long time gone with those doublers and investment that odfer some too good to be true investment on which there are still some experienced users do being hooked up and lose money because of these things on which its not that surprising.People would be able to realize when you are that losing money.

[Alex077]

Every Bitcoin bull market is followed by a huge wave of scams. Scammers try every possible way to exploit the general public’s lack of understanding of what Bitcoin really is, taking advantage of both ignorance and greed. Bitcoin is too abstract for many people to grasp without knowledge of both economics and some technical understanding.

In every bull run, scammers come up with new and more creative schemes. In the past, we saw ICOs Initial Coin Offerings   such as EOS, ETH, and many others. Then came the “blockchain has other uses beyond money” narrative, which was used to promote countless projects....

Every cycle we see the same circus with different costumes. In 2017 it was ICOs, in 2021 it was NFTs and "metaverse" land sales, and now, apparently, it’s ,,Bitcoin treasury companies,, promising to “hold BTC for you” because you’re too lazy to set up a wallet.
Scammers don’t need to be tech geniuses — they just need to tell a good story that pokes at greed and FOMO. Most people hear “Bitcoin” and their brains switch to “get rich quick mode,” forgetting basic DYOR. And when BTC’s flying to new highs, nobody wants to hear boring stuff like private keys or cold storage — they just hand over their sats and hope for moon.

As for whether BTC treasury scams are worse than altcoin rug pulls… I’d say they’re both toxic, just different flavors. Altcoins have a bigger playground because they can sell the “better than Bitcoin” fairytale to newbies who think Bitcoin is “old tech.” BTC treasuries, on the other hand, prey more on the normies and boomers who want “safe exposure” without learning custody.

If Bitcoin dominance is \~60%, that still leaves 40% of market cap swimming in altcoin casino waters. Trust me, there’s plenty of scams floating in both pools — it’s just that BTC treasuries are the scam du jour.

[CryptoHeadlineNews]

How do scammers manage to convince people to invest in their projects?Do you think Bitcoin treasury companies are the biggest scam, or are altcoin scams worse, considering Bitcoin’s dominance is only about 60%?

You literally just answered the question yourself how scammers convince people to invest into their projects from the first statement you made above, which is literally as a result of "greed, ignorance and due to lack of understanding to what Bitcoin truly is and stand for". Because normally speaking, when Bitcoin started within the first and second bull, people didn't knew much about it, which led them falling victim to scams, and as time went on within the forth and fifth halving, people started started getting acquainted and understanding fully what Bitcoin is, of which I'm pretty sure that in this current 2025 Bitcoin bull run, it will be hard for ordinary Bitcoin investors falling victim to scams.