Research Proves The Majority of Bitcoin Trading Is A Scam

The price may have dropped drastically in past few months, but the world is still crazy about Bitcoins. People want to buy it and the industry is dealing in massive profits. But hardly do the buyers know that scammers are slowly dominating the Bitcoin trades, as a research again proves the presence of 95% unregulated exchanges in the market.
Sorry to break it to you, The Majority Of Bitcoin Trading Is A Hoax
A thorough analysis published by Bit Wise Investments, states that majority of the bitcoins present in the market today are actually a part of scam. This has been further backed up by proofs based on top 81 crypto exchanges, which together make up $6 billion in average daily bitcoin volume, while the surprise still lies in the fact that only $273 Million of the aggregate is legitimate.

This isn’t the first time when the presence of massive fake volume has been put under question. The idea has been floating around for a long time and fortunately, Bitwise is the first one to systematically analyze all of the exchanges and figure out the real ones among them.

The scenarios which passed Bitwise’s test of volume included Coinbase Pro, which reports about $27 million in average daily volume in bitcoin and had a spread of about 1 cent. But on the other hand when compared with , CoinBene — the biggest exchange on CoinMarketCap.com — the spread was around $15 and it continued reaching $300 in most of the exchanges.

Matthew Hougan, Head of Research at Bitwise, knows that people already doubt the value of cryptocurrencies and some of them even consider it as a big mess, considering how the data gets manipulated every now and then. But if regulators start taking possession of bitcoin and promote the trade, a lot of such scam can be cleared to make way for efficient and well-arbitraged market.

For now, if you have plans to invest in bitcoins, then you should do some extensive research beforehand, in order to stay away from doing a fake trade.

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