Crypto is a major proponent of creating radical market freedom for goods and services. The most idealistic backers of cryptocurrency hope that people can purchase anything, from anywhere – all without interference from anyone else. But with this environment comes an extreme level of free expression when it comes to ideas. Most view this as positive since incredible advances in technology come about through bold thinking. While allowing open thoughts provides immense potential, remember to think responsibly, because too much-unchecked liberty creates dangerous situations.
The ever-evolving crypto space is known for its open culture that embraces unconventional thinking and even controversial ideas. Unfortunately, this also allows some people to entertain wild conspiracy theories related to cryptocurrencies. In this article, we’ll look at six of the most widespread conspiracy theories about cryptocurrency out there. From allegations of manipulation and fraud to secret organizations pulling strings behind the scenes – you’re sure to find an interesting (if not perplexing) idea here!
Biggest Crypto Conspiracy Theories
Bitcoin is controlled and managed by the Deep State
Bitcoin is a topic of debate across the world, as some people believe it to be completely beyond government control, whereas others assert that governments play an influential role in its creation. Rumours amplified when CiaProject.org emerged around 2013, claiming that the CIA had created digital currencies such as Bitcoin and cryptocurrencies to use them for passing illicit funds undetected. Furthermore, no one has ever been able to determine who Satoshi Nakamoto–the brains behind creating this revolutionary new form of the financial transaction–is due to his anonymity adding more fuel to these theories.
Conspiracy theorists have proposed four pieces of evidence that suggest a link between Bitcoin and the CIA. They point to the translation of Satoshi Nakamoto as “Central Intelligence”, the careful concealment of his identity due to alleged intelligence trainings, Satoshi being multiple persons which are usually attributed to powerful institutions like national governments or corporations, and finally BitcoinTalk censoring discussion about its possible connections with CIA.
While “Satoshi Nakamoto” is a fairly commonplace Japanese name, it doesn’t take advanced intelligence training to remain anonymous online. While some pseudonyms could be run by multiple people working together, there have been instances of lone prodigies achieving success in the real world – no trench coats required. Finally, despite censoring threads on Bitcoin Talk, topics related to potential CIA sponsorship continue to exist today.
Tether Isn’t 1:1
It has been proven true that Tether’s claims of having 100% US Dollar reserves backing up its stablecoins were false. In 2019, the company had to disclose in court that they only had 74% of the dollar and short-term securities stored as a reserve. Following this reveal, Tether changed its official website’s statement regarding their USDT coins being fully backed by money reserves. But that has been in 2019. Tether then claims it can back up every USDT available with its reserves of its.
Blockstream Hobbled Bitcoin
As Bitcoin became more widely adopted, developers observed the network’s inadequate processing abilities. The protocol is only able to handle five to seven transactions per second and can take days for a transaction to be approved – much too slow for it to successfully compete with large payment providers like Visa and MasterCard. This inspired the bitcoin development team to make changes; divide the single whole into multiple parts to maximize its potential effectiveness at handling transactions quickly and efficiently. Several suggested a hard fork as a solution for this issue. This will suggest the protocols for the Bitcoin system will alter, and also an entirely different community would be built up. The adoption is a lot easier simply since this new system would be faster and more effective than conventional Bitcoin.
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