Thursday, 10 March 2016

OneCoin is a pure pyramid scheme

Facts about OneCoin


Why there's a need for mining onecoins although the structure is not decentralized? The idea of mining centralized cryptocurrency is absurd. - It's just a fundamental conflict with the general idea of cryptocurrency. 

OneCoin claims that they are mining onecoins in three different locations with massive computer power. Why there is a need for a massive calculation power when a single modern computer could form a database for 1.2 billion onecoins and it certainly would not take years? 

Usability of onecoins

There is no way to have a proper circulation of the coins. Let's imagine onecoins would be available for merchants to use. The merchants need traditional currency to run their businesses so they would have to get rid of onecoins as soon as possible. Who would buy the coins? Even if someone would buy those coins there would be a constant pressure towards selling coins and no one in their right mind buying them. We all know what happens to a currency that has no demand what so ever.

A cryptocurrency itself is not a blessing for merchants (at least not yet and supposedly not even years to come). Nevertheless some entrepeneurs serve their customers by giving a chance of paying their purchase with bitcoins. It's only an additional feature which does not hamper their businesses too much.

So what does onecoin has to offer? It's simply a play money not ever tested in a free market. It has only a imaginery value set by dictatorship of Ruja Ignatova. 

The so called "converting MasterCard"

Onecoiners have been saying that there will be a "converting MasterCard" in the future. OneCoin's Finnish Country Manager, Tommi Vuorinen, has explained the card as goes: When you are at a local market shopping and come to a register to use your (converting) Onecoin-MasterCard Onecoin Ltd buys onecoins from your e-wallet at the same time for the equal amount to your purchase. 

Let's play along with this idea and have a peep in to the future how a converting card would work - or would it:

First of all the total value of onecoins is supposed to exceed vastly the amount people have paid for their education packages (not forgetting that large amount which has gone to paying commissions etc.). So Onecoin Ltd would not have much cash supply to keep the coins circulating. It would be hard to believe they could cover all transactions made with converting cards.

Also this sort of transaction with a converting card would mean that the actual purchase is done with local cash, not with onecoins. Therefore it would be a massive burden for Onecoin Ltd, because it would constantly have to buy coins from the market to keep them circulating. There would be an enormous pressure for Onecoin Ltd buying coins and relatively small interest for anyone buying them from Onecoin Ltd. And everyone should know what's the inevitable result from this.

One might also ask what purpose does a cryptocurrency have in this kind of transaction? - A silly and senseless one I suppose.

OneCoin in press

The only way for OneCoin to get positive publicity has been buying it. We have seen the bought ad in Forbes magazine.

Onecoiners truly believed it was a unpaid article about OneCoin. Probably because OneCoin deliberately used the cover in their marketing not mentioning a thing about it being an ad.

Recently they have done the same thing with the February issue of Financial IT magazine. However this time they are also giving a vastly exaggerated picture of Financial IT as a magazine intensively followed by financial world. They claim that about 70 % of banks are subscribers to Financial IT. 

In fact Financial IT is a insignificant magazine which is published only four times a year with only 2000 print copies (claims the magazine itself). Each issue of Financial IT contains almost entirely paid articles and ads. They are also quite flexible what comes to their integrity. When a ponzi scheme comes splashing their cash Financial IT seems to be the magazine to get an article into. They even went as far as made an exception to have an extra issue published when OneCoin showed enough money to get an article (with a cover) to their magazine. To underline the ridiculousness of the case the issue for OneCoin is exact copy of their previous issue - of course apart from cover and the story of OneCoin.

To conclude...

The stuff above is only a fraction of what's wrong with the whole picture of OneCoin. Why there still are more and more people getting involved with this ponzi scheme is beyond me. There are already more than enough warning signs that one would think people had a better judgement.

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