OneCoin vs. Bitcoin Comparison
Hey everyone, I just dropped into the studio real quick and a couple guys asked me about OneCoin. I thought I would shout out to you on Facebook to let you know what OneCoin is and what my opinion is.
Watch the video here:
This is going to be a controversial subject because there’s a lot of people that are die-hard, totally believe OneCoin is going to make them rich. Then there is another side of the spectrum where people believe OneCoin is a complete scam and Ponzi Scheme.
I’m going to try to stay away from the speculation a little bit and just tell you the facts.
First of all, OneCoin and Bitcoin are totally different.
If you are investing in OneCoin I would be very concerned. Let me list some facts that cause concern for me:
- I’ve spoken to people at a high level in the organization because a journalist reached out to me wanting my opinion and feedback on OneCoin. While talking to these people, unfortunately they weren’t able to answer my questions to my satisfaction.
- My questions were specific like “where is OneCoin traded?”, “where is the exchange?”, and they would show me the exchange, but there is no order book and you can’t see any orders in the order book. The exchange is not a true exchange. It’s not really an open market.
- What I discovered is that there is no open market for OneCoin. There is no open place where people establish the value based on supply and demand. The value is established by one company, OneCoin.
- Their cryptocurrency code is not open source, but it’s centrally controlled by them. I asked several times to see it, but they wouldn’t let me.
So, if the monetary policy and source code for OneCoin are not open and transparent, then it’s not decentralized (like the value of most digital currencies), and there is no open and free market for trading, there’s really only one conclusion.
There’s tremendous risk associated with OneCoin. I’m not going to pass judgement on the intentions of the company, and what they hope to do. Maybe at one point in time they want to build this up and make it decentralized, and all those promises will come true.
But, as a prudent investor, it’s something that I would be very concerned about. And, I would suspect that you would be very concerned about it too.
It does not compare at all with Bitcoin. Bitcoin is decentralized, it’s open source (anyone can read the code), and there are free markets established & trading it all over the world. There is no comparison.
Those involved in OneCoin will say that “there are more people trading OneCoin than Bitcoin,” but that doesn’t really matter.
Bitcoin has an open and free market, it’s transparent and is decentralized. Maybe it’s possible that one day OneCoin could become like a Bitcoin, or even take it over. But, the reality of what I’ve seen is that there is real cause for concern. So, I would advise you to be very, very cautious and careful.
Please realize that OneCoin has no free market, it’s not open source and the mining process is all centrally controlled.
So, with all that, it would be very easy for all that to completely disappear, or one day become completely worthless as it comes out to the free market.
Founder, American Bitcoin Academy
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