Two Sides Of The Same Coin: the book titled “Cryptocurrency for Beginners” written by Amit Bhardwaj’s Is A Poorly-Written Instrument that holds no educational value whatsoever.
The book written by the entrepreneur Amit Bhardwaj titled Cryptocurrency for Beginners is priced at Rs 1,499. A full front-page advertisement of the book was featured on Times of India’s Sunday edition on 9th of July. This ad suggested that the book opens the world of cryptocurrencies by introducing everyone to it and how cryptocurrencies is affecting the financial landscape. Major dailies such as the Dainik Jagaran, the Hindu and the Economic Times also had front-page ads of the book. Popular Indian outlets including Hindu, NDTV’s Profit, Business Line, and the Indian Express as well as cryptocurrency focused websites such as the Bitcoin News and News BTC featured several publications, sponsored posts, and ads. Clearly, the book’s promotional campaign has been extensive. Links to effusive tweets about the book “Cryptocurrency for Beginners” was displayed on the Bhardwaj’s official site including tweets from some celebrities, among them the actors Nargis Fakhri, Vir Das and Shilpa Shetty.
Cryptocurrencies are digital currencies built on a technology known as blockchain; it is mainly a distributed database. In recent months, Cryptocurrencies have gained intense attention from investors. The innovative technology that these digital currencies are built on, acts as a public ledger. Each Block chain-based Transaction is recorded and transmitted to every node in a worldwide network of computers. since the start of 2017,Bitcoin which is the most popular cryptocurrency, which pioneered the blockchain, has reached an all-time high climbing from about $998 on 1 January to $3,574 on 11 August, this shows that the price has tripled over the years.
“Free Rs 1,200 worth of cryptocurrency” was promised to people who purchased Bhardwaj’s book Cryptocurrency for Beginners. But taking a brief look at the book shows that, Cryptocurrency for Beginners holds no educational value whatsoever and its promotional campaign was a directed at attracting prominent investors into his dubious business scam. The March 2017 issue of The Caravan’s featured a cover story that carefully reviewed Bhardwaj’s multi-layer marketing company known as the GainBitcoin, which runs in a Ponzi-like way. The cover story explains how GainBitcoin dupes investors by selling to them a dubious cloud-mining scheme that promised unrealistic returns, which further prove that the nature of his business plan is a grand scam.
Bhardwaj book “Cryptocurrency for Beginners” serves as a means of furthering these ploys. His book comes with “Rs 1,200 worth of cryptocurrency” and this crypto currency is not denominated in any popular form of cryptocurrency such as Bitcoin.
Bhardwaj also created “MCAP Tokens” and they these tokens were launched by a new company known as MCAP Labs which is also owned by Bhardwaj. Book buyers are promised digital units of value instead of any popular form of cryptocurrency. In other to fully grasp MCAP Tokens, you must understand their relationship to the cryptocurrency Ethereum. The cryptocurrency Ethereum has experienced a dramatic cryptocurrency boom in a past few months and it has formed the computing platform on which MCAP Tokens and other various blockchain-based products can be built. It is known as the world second most popular cryptocurrency. Many blockchain-oriented companies engaged in initial coin offerings (ICOs) to raise the necessary capital for their ventures. This is similar to initial public offerings or IPOs, where company’s offer stock shares to prospective investors with the aim of raising the required capital. But in the case of blockchain-oriented companies, cryptocurrency-based tokens are being issued to investors instead of shares. The Ethereum often serve as the platform on which these digital assets are built on. These tokens are often bought by Investors in the hopes that there will be an appreciation in value of the tokens. The skyrocketing of the price of Ethereum this year can be traced to the recent flurry of the initial coin offerings, from a little over $8 on 1 January; it reached nearly $301 on 11 August to an eye-watering $388on 13 June which was the highest peak.
An ICO was launched by MCAP Labs In late April, issuing “MCAP Tokens,” which was built on Ethereum, these tokens went for $5 each and early investors received some discounts. The price of the MCAP Token has experienced a downward dive over time, according to the site CoinMarketCap; it listed the price of $1.89 per token on the 11 August. MCAP Labs interests are similar with those of GainBitcoin. Currently, Bhardwaj made a decision to issue payouts in MCAP Token and not Bitcoin to investors with ongoing GainBitcoin contracts. Bhardwaj also runs the Bitcoin Growth Fund which is an online exchange site to sell MCAP Token and it determines the Token’s price used by GainBitcoin. This lead to price inflation as of 11 August, the value of one token was listed at $5 by the Bitcoin Growth Fund and with CoinMarketCap valued at $1.89. The Bitcoin Growth Fund’s inflated valuation resulted in, fewer tokens being released to their investors, according to the recent decision. Shubham Jain, an accountant, tax consultant and an investor in GainBitcoin described the company’s transition to MCAP Token from Bitcoin-based payouts as “a breach of contract”. GainBitcoin investors complained of being forced to get MCAPs because a digital-wallet service known as Coin Bank which is unfortunately owned by Bhardwaj is required to be used. This digital-wallet service is manipulated by Bhardwaj; such that, an investor must transfer to MCAP wallet from a Coin Bank wallet in order to withdraw despite their balance being in Bitcoin.
Jain claimed, Bhardwaj is basically forcing them to accept payment in a token that seems to be reducing in value and holding investors’ Bitcoin hostage. An article about MCAP Labs published by Bitcoin Magazine on 12 July states that, with the Ethereum ICO, GainBitcoin has successfully created extra money out of thin air in order to keep the scheme going. MCAP Labs impressive numbers about the circulation and trading volumes of the tokens were questioned in the article.
For instance, the website says that nearly 7.5 million of the Tokens were sold by MCAP Labs at $5 each resulting in a total of over $37 million. Since the Bitcoin Growth Fund website is also owned by Bhardwaj, the reliability of the data seems unclear. The fact is the MCAP Token price was exaggerated and this could be linked to Bhardwaj since he has admitted to me in a cover story I reported in March, of inflating investment figures on the GainBitcoin website because this boosted the investors’ confidence.
A cryptocurrency enthusiast named Shiv Mehta, who has a vast knowledge of the blockchain technology, reported that people claim the existing MCAP Tokens in total are worth millions of dollars, but in actual fact, these MCAP Tokens are worthless because they are very hard to sell. He went on to say that although MCAP Tokens investors think they are rich on paper, but in real they are not and they will realize this when most savvy investors and cryptocurrency exchanges will not consider buying them. Shiv Mehta also claimed that Bhardwaj would continue his dubious scheme Until the money gets dried up completely.
The launch event for MCAP Token can be seen on YouTube in a video uploaded in early May, it shows the money flow for now. In the video, standing before a massive screen, Bhardwaj starts by saying “I can assure you this is going to change your life, “shiny confetti and cannon fire was released as the crowd cheered. The word “GAINBITCOIN” was spelled in large letters stand. Several attempts have been made by Jain to lodge complaints with GainBitcoin support staff but all attempts were futile. His complaints were met with indifference or silence and he is not alone in this experience because there are many angry comments on the GainBitcoin Facebook page. The companies Customers are asked to pay if they want their complaints to be speedily addressed. Jain showed me screenshots of the two options the site provides its customers with “normal support” where clients are promised to receive support in 24 to 48 hours and there is “paid support” which costs 0.01 Bitcoin, worth about Rs 2,200, where client who paid is promised to receive support in two to four hours. I asked Jain towards the end of my conversation with him whether he would consider investing in the cryptocurrency again and he replied “Definitely not” and that he wished he had done his research. But thousands of others, like him, are stuck in an 18-month contract that is non-refundable.
The prospects of MCAP Labs as a business and the prospects of MCAP Token as an investment are heavily intertwined. The business marketing materials remain incredibly unclear; MCAP Labs seems to portray itself as a crypto-focused hedge fund that yields handsome returns for their customers.
Taking an in depth look at the MCAP Labs website, the question of whether MCAP Labs possess the will or the tools to do this. In the cryptocurrency world, an explanatory manifesto known as the MCAP Token “white paper” is required from companies attempting an ICO. This document is an insipid document that contains irrelevant things or information such as information about how to mine cryptocurrency, the composition of middle-class populations in countries across the world and the histories of different cryptocurrencies. It doesn’t show how MCAP Labs promises to achieve profit in any way. The only explanation the MCAP Token white paper provides the company’s investment strategy is “MCAP will be designed with algorithms and analytics at its core to separate the wheat from the chaff.”
No details about the company’s investments decision maker were revealed by MCAP Labs website but an “experienced team of analysts, “and a “dedicated team of analysts at Bitcoin Growth Fund” was mentioned in the white paper. Steem, who was an anonymous user on the blockchain-based social-media platform, wrote an extensive post on Bhardwaj’s Bitcoin Growth Fund two months ago. The post was titled “new crypto scam by a group of old scammers” and displays screenshots of profiles and photographs of several individuals who were once listed as part of the team of the Bitcoin Growth Fund’s website. One of them was contacted and he denied being connected to the fund but was only an adviser to the investing companies. In recent times, none of the team’s information whatsoever is on the MCAP Labs site or Bitcoin Growth Fund site.
In a blog post by MCAP Labs, they pointed to several factors that people, especially investors to consider before investing in an ICO. The lack of necessary information raises alarming red flags especially the fact that there is no stated information on who runs the company. Questions like Do they have support from known experts?”“Are there experienced specialists?“Who is working exclusively on this product? Cannot be answered since none of this information is found on MCAP’s own website and white paper.
A video found on the Bitcoin Growth Fund website boosts of the recent price spikes in Bitcoin and Ethereum, and that this will definitely lead to the rise in the price of the MCAP Token from the initial price of $5to $100 per token by 2018 which is about 2,000% leap. This claim made by MCAP Labs run counter to basic financial literacy. Even the most sophisticated investors cannot accurately predict such market movements much less say that they are “inevitable.” This statement becomes less coherent because MCAP Token is completely different from Ethereum and Bitcoin, so the fact that one commodity experienced a spike in price does not mean a completely different commodity will do the same. The Statements create a misunderstanding of the way investments work because it serves to swindle and take advantage of gullible investors. Questions relating to the recent switch to the token for payout, MCAP Labs, and MCAP Token were posed by me to Bhardwaj and he responded by commenting that he was “not interested”
in comparison to Cryptocurrency for Beginners, MCAP Token’s white paper and advertising copy may hold better information. There are some blatant factual inaccuracies contained in the book. The book by Bhardwaj claimed Bitcoin is only four years old but it is eight years old. It also claims that encryption and cryptography are the same but they are not. That the US dollar is backed by gold but it has not since the 1970s.the book contains paragraphs so garbled that they seem meaningless for instance, it claimed that the monopoly of Mt Goxwas affecting the cryptocurrency sphere negatively but the Bitcoin exchange has not been in existence for some years now. The most recent impressive technological development is Cryptocurrency mining. You can get started with this introduction if you are thinking of being a cryptocurrency miner.
The book Cryptocurrency for Beginners holds little or no useful information for people genuinely interested in Cryptocurrency mining. Bhardwaj’s book holds no relevant information such as whether or not one has to pay taxes on it, a description of the legal and regulatory debate around cryptocurrency in India, its different technological applications and other needed information one as to be aware of. The in-depth explanation of what blockchain really is, cannot be found in the book, in fact, it left relevant issues unaddressed and untouched. What the book contains was poorly organized, repetitive set of chapters that ended up contradicting established information on Cryptocurrency mining. Some of the information contained in the book was overly technical and puzzling, which ends up confusing rather than clarifying what the blockchain is. any reader interested in Cryptocurrency is better off surfing cryptocurrency-related entries on Wikipedia, saving one’s time and money than spending Rs 1,499 on purchasing Bhardwaj’s book. Although there are certain issues that investors should be careful of, can be found in the book, and this is the only merit the book contains. For instance, Bhardwaj writes that “An article written in the UK showed that18 out of 40 companies that offered to exchange bitcoins are out of business and only a handful were able to pay back their clients,” “There is no guarantee that you can be able to protect your bitcoins from human error, digital failure or malfunction or fiduciary fraud.” Following the direction of Bhardwaj’s businesses, it will get to a time where many of his investors will learn this lesson whether they buy his book or not.
Source of Article : – Caravan Magazine