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Do you think that after invention of cryptocurrencies and good blockchain projects, the scams like HYIP, MLM, pyramidal scheme has bee reduced significantly?

Yes that is 100% true but it has happened just recently, particularly after 2017 when people start to realize that bitcoin and cryptocurrencies are really something which can change their lives and for the first time they recognize this asset class as a store of value. But prior to that ( from 2013 to 2016 ), the ponzy schemes even make use of bitcoin to swindle people's money. The best example is MMMGlobal which offered a lucrative scheme where people can double their money every month and it is obvious that the early you join the most you can make and those who join later are likely to get scammed, because this type of schemes are very short lived and turned out to be scams after 1/2 months.

Coming to HYIPs, I must say that HYIP by definition is a risky asset and as people have a tendency to make use of their fund to grow it they usually fall prey to it and also some people get carried with the shear greed to make some quick money but eventually ended up in losing what they have. These HYIPs are also taking bitcoin as a payment method and in some form they are trying to convince people that they are genuine and they are investing in some projects. But the reality is just the opposite, they are taking people's money and initially they pay some amount and after 2/3 months they will shut down and run away with the money of innocent people. But this trend has really changed after the essence of bitcoin and altcoins and for the first time since 2017 people start to recognize its worth and hence I can see a shear shift of investment from HYIP or MLM to cryptocurrencies and people also feel secured when they put their fund in cryptocurrencies as compared to putting those in HYIP or MLM kind of things.

Further the cryptocurrencies are the real projects and not something of a virtual one and they are backed with educated people, developer's and tech savvy people who really add value to the system and they have definitely a goal and an objective of their project and in the backend they are in constant development and hence there is a store value of those crypto assets. They all run on the top of blockchain technology and there has been a craze about blockchaijn technology which is the future version of how we do business or how we transact or interact with others. So there are a lot of use cases of this technology in various domain of our life and hence there is value which is imbibed in this technology and that is why it is real and not like the MLM or pyramidal scheme which are scam in their own fundamentals because in such schemes people  make money at the cost of someone else money. So there is no real thing which backs such a program, so it is ethically also not correct to put money in such schemes. 

I was also a victim of such schemes in past and I am proud today that I have endoresed blockchain in my life and crypto is the real way to take my life forward. This is not an investment advice but I have learned a big lesson from such things and I can comfortably say that crypto and blockchain really adds value to life both economically and technologically.


Scams will always be around, there are always bad people taking advantage of others. But when blockchains become more mature, there are more legit projects. 

You can recognize scams when you know where to look for.

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