What is cryptocurrency and what did Shark Binh warn about cryptocurrency?

What is cryptocurrency?

The concept of digital currency, electronic money or crypto currency has been mentioned a lot in recent years.

Digital currency is also known as electronic money, virtual money... Illustration photo

Basically, cryptocurrency is any currency or money-like asset that exists primarily in digital form. According to the definition from the Bank for International Settlements (BIS), cryptocurrency is an asset that is represented in digital form, without physical form like paper money or coins. Cryptocurrency, also known as electronic money, virtual money... is a form of digital asset, using encryption technology to control the process of creating new currency units, securing and verifying asset transaction processes.

Unlike traditional currencies issued and controlled by national central banks, digital currencies are not issued or controlled by any intermediary agency or government . They operate on a decentralized model and use encryption technology to ensure safety, transparency, and anti-counterfeiting.

Decentralization is the most important feature of cryptocurrency. Thanks to blockchain technology, this currency is not controlled by any individual or organization. That helps cryptocurrency to conduct global transactions without the intervention of third parties, bringing freedom and transparency in transactions.

The mining and use of cryptocurrencies must follow the rules of blockchain technology. This helps ensure that the amount of money is limited, avoids inflation and maintains its value in the long term.

Cryptocurrency transactions are typically recorded on the blockchain, a distributed ledger technology that allows anyone to verify and confirm transactions made.

Once a cryptocurrency transaction is confirmed on the blockchain, it cannot be changed or reversed, which is different from traditional banking transactions.

What does Shark Binh warn about cryptocurrency?

Mr. Nguyen Hoa Binh (Shark Binh), Chairman of NextTech, has given many risk warnings and comments on the cryptocurrency market, especially after the scandals related to the AntEx cryptocurrency project he participated in.

In a post on his personal page on September 24 and a livestream on his personal Fanpage on the topic: "Crypto assets - Opportunities and risks" on September 26, Shark Nguyen Hoa Binh expressed many opinions about the crypto asset market in general and digital currency (crypto, coin) in particular.

According to Mr. Nguyen Hoa Binh, the crypto market is a purely manipulated market. “When the crypto and blockchain markets started to emerge around 2017, Shark Binh also paid attention, researched and invested... Experience is lost, lost everything. In this field, investing properly and seriously is definitely lost” - Mr. Binh said.

“Please consider carefully before participating in crypto. I do not encourage or discourage, but each person must take responsibility for their own decisions” - Shark Binh advised.

According to Shark Binh, "coin startups raise millions of dollars and then... fail, investors lose money." He also admitted that he has had many "valuable" experiences with digital currencies since 2017.

In 2021, through the Next100Blockchain fund, he invested 2.5 million USD in AntEx - a highly promoted DeFi project. But shortly after, the ANTEX token lost 99% of its value, and its website and media channels disappeared.

"As a direct investor, Shark Binh sends advice to the startup and SME community: "Don't get too caught up in coins" - Shark Binh wrote on his personal page.

Also according to Shark Binh, most crypto projects fail due to lack of practical applications, high risk of manipulation and need for a clear legal corridor to protect investors.

Source: https://nld.com.vn/tien-so-la-gi-va-shark-binh-tung-canh-bao-gi-ve-tien-so-196251007144835278.htm