Bitcoin investment websites shuts down quickly compare to other investment websites. A survey carried out by Mntrends team shows that most bitcoin and cryptocurrency investment websites stays at most a month. We also took out time to study and understand why bitcoin and cryptocurrency investment sites shuts down quickly.
There are various reasons that influence why they shut down very easily. We’ll take a look at some of these reasons and why you should have a second look before you investment in any cryptocurrency investment website.
REASONS WHY MOST BITCOIN INVESTMENT WEBSITES SHUTS DOWN
The following are some of the major reasons why most bitcoin investment platforms shuts down. Note that these reasons are coined from personal experience and stories in the social media
1. PRICE OF BITCOIN: Granted most of the bitcoin investment websites are fraud. But the few real and legit websites are usually are affected by the price of bitcoin. Take for example, if investors throw in their bitcoin when the price of bitcoin was high and suddenly the price of bitcoin fell by some 50%.
If the investors make a withdrawal request it means that the bitcoin investment website will have to pay additional 50% bitcoin to its investors. Now this is a lose to the company and it will eventually leads to bringing one or more excuses that might eventually leads to its collapse. A case study of this is the Bitclub Advantage investment website. So the unstable price of bitcoin is a major reason why some website shut down and go out of business.
2. CYBER ATTACK: The simple and clear fact is that these websites are victims of constant cyber attacks. Most times these attacks are so severe that its hard to recover from. A good study of an investment website that is victim of severe cyber attack is Karunato, they didn’t last two weeks.
3. GREEDY ADMINS: The attack from within is usually the strongest blow. Most times some of the trusted admins get greedy and steal bitcoins worth millions and this eventually leads to the collapse of such bitcoin investment websites.
4. NO PLAN: It’s sad to say that some of the investment websites lack clear plan and visions. This is what makes it difficult for them to continuously be in business. For an investment website to last for a long time they need to have a long term plan that will keep the company on its feet and running.
5. INCONSISTENCY: Some of these websites are still under construction when they launch. This is a big mistake as it makes them inconsistent. And no investor will like to invest a second time when an investment platform is not consistent. Some of these websites are working today but showing error 404 the next day and the saga continues.
In overall of the many reasons why bitcoin investment websites shuts down, bitcoin price, cyber attack and greedy admin are the worst. Any bitcoin investment websites that faces the above attacks will likely shut down or go out of business.