How to spot a fake cryptocurrency

Bitcoin and other crypto currencies which are actually in use can easily be verified. You can see the block where they were created in the blockchain and you can trace every time they changed hands, and verify that the person offering them has not already spent them. That is one of the major features of cryptocurrency.

Perhaps you are wondering if some new cryptocurrency is just a scam. There are countless con artists promoting new crypto currencies and trying to get people to invest in them in ICOs(initial coin offerings). They may have a website with pictures of their tech geek/coder, their advisor, their officers and their financial backers. Suckers are told that if they get in on the ground floor, they will get an enormous gain when to coins go UP, UP, UP, just like Bitcoin went up. Unfortunately, the con artists will take the money and then start a new website, perhaps with the same scraped photos and different names. You might look for press coverage and reviews of the coin, to make sure it exists and has some advantage over the lame original Bitcoin, whose "Proof of work" keeps its transaction rate to four transactions per second, hardly enough for worldwide commerce, and which increases global warming by wasting megawatt hours of electricity in the mining. The price has declined so mining is generally not profitable, and in the future the rewards will be automatically cut in half, that is, solving a block will only reward the successful miner with half as many Bitcoin.

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