Ploutos Coin Review: All You Need To Know Before Investing

Before Investing

"Never invest money that you can't afford to lose" a golden rule that we should always put in mind when we invest. But that doesn't mean we will just freely give our hard-earned money to so-called investments which promises big returns and give to them our full trust even though we know these companies are not authorized by the government to run these investment schemes. Of course there are risks in investing, that is the very reason why we should always remember to only invest the amount of money we are willing to lose but, for me, in investing you don't just think about the golden rule above because it should also be coupled with risk management, that means as much as possible, you should avoid or at least lessen the risk, which always exist in investing. And I believe the risk management is even a prerequisite before thinking about the golden rule.

Managing the risk might mean making sure the people or companies handling your investment are legal and credible and that it's reliable.

Don't just think of the money you will earn tomorrow but also understand your investment vehicle, how does it work and how it operates and how do you earn profits from it, not just absorbed what others are saying about it without understanding because when time comes that you need to share your investment to others to help them become financially stable, you can explain it and help them make an informed decision, not a decision they will regret later on because you somewhat forced them to join because you have a commission when they sign up.

Screengrab from Ploutos-coin.com

Not A Cryptocurrency

In my understanding, this Ploutos Coin is not a cryptocurrency as what the maker and their so-called "investors" are preaching, and Ploutos Coin doesn't even pass the simple definition even from the wikipedia, which states:

"A cryptocurrency (or crypto currency) is digital asset designed to work as a medium of exchange that uses strong cryptography to secure financial transactions, control the creation of additional units, and verify the transfer of assets. Cryptocurrency is a kind of digital currency, virtual currency or alternative currency. Cryptocurrencies use decentralized control as opposed to centralized electronic money and central banking systems. The decentralized control of each cryptocurrency works through distributed ledger technology, typically a blockchain, that serves as a public financial transaction database." ~Wikipedia.org

Let us emphasized where I think Ploutos Coins failed or passed in order for it to be considered a cryptocurrency using the given definition.

• Digital Asset. Yes on this. Although we can consider Ploutos Coin as a digital asset because when you buy plotous coins from a person (because they don't sell it directly in their site, you need to be referred by a member first) you will be given an account on ploutos coin website and your money will be converted to a "plotous coin" or just a "coin" which will just be a set of numbers in your account which now becomes your digital asset that still has value as long as Ploutos Coins website exists. But unlike other digital assets or cryptocurrencies like Bitcoin, your ploutos coins cannot be used outside their own website. It's just a useless numbers. Unlike bitcoins, you can use it to book a hotel, buy your lunch, pay online because it's accepted by many establishments and stores. Ploutos coins? No partner stores yet so when ploutos coins website cease to exists, you cannot call them assets anymore because, yeah, it's nowhere to be found.
•  Designed to work as a medium of exchange. When I asked my friend, an early investor of this ploutos coin if I can buy ploutos coins directly from her and transfer it to my account, she isn't sure if that is possible. Although I know that unlike Bitcoin where you can create a wallet address from other websites like blockchain.info or create bitcoin wallet address with Bitcoin exchange sites like Coins.ph (most trusted and widely-used in the Philippines), you can only create an account at ploutos website, I don't even know if that is a wallet or an address where you can move or transfer your ploutos coins. If that is so, then I'm afraid plotous coins also failed on this definition if there's no way to transfer because as a cryptocurrency, it should work as a medium of exchange.
• Uses strong cryptography to secure financial transactions, control the creation of additional units, and verify the transfer of assets. According to an article at Investopedia, "Bitcoin is like gold in many ways. Like gold, Bitcoin cannot simply be created arbitrarily. Gold must be mined out of the ground, and Bitcoin must be mined via digital means. Linked with this process is the stipulation set forth by the founders of Bitcoin that, like gold, it have a limited and finite supply. In fact, there are only 21 million Bitcoins that can be mined in total". That means, in a cryptocurrency like Bitcoin, the coin supply cannot be created out of nowhere, like Gold, it must be mined. That means there must be work to do before a coin or bitcoin is generated, in most cryptocurrencies like Bitcoins, it's called PoW or proof of work which generates blocks and as a reward, bitcoins will be generated. Learn more about PoW here. In ploutos coin, it seems that coins are arbitrarily created as soon as you will pay the equivalent of 10 coins first, viola, a ploutos coin will be magically created and now in circulation? That surely violates one important concepts of a cryptocurrency and that's why this ploutos coin should not even be called a cryptocurrency because of the absence of PoW, cryptography and control of creation.
• Use decentralized control. A promotional video of ploutos coins on youtube uploaded by Ploutos Coins channel states that it is "a new decentralized cryptocurrency" Do they really understand the word "decentralization"? Bitcoin is a great example if a decentralized cryptocurrency, that means no one has control over it, not even a government. How then is Ploutos Coin decentralized if according to some of their orientation videos, the price of Ploutos Coin is decided by the coach? or the ploutos owner? And when ploutos coin price will only go up and never go down for the first, second and even 3rd and 4th years? How is ploutos coins decentralized if it heavily relies on bank account and can't be used anywhere? Banks are controlled by the central bank, isn't it a centralized system? They are just putting the words "decentralized" on their description but without a sense. And people are believing them that this ploutos coins is a "decentralized cryptocurrency" which is not even a cryptocurrency and not even close to the word "decentralization" this is insane.

Those are just some of the definitions of a legitimate cryptocurrency which ploutos coins failed to passed based on the definition given by wikipedia, and there are even more if we listen to their orientation videos. Just listen to their reason why ploutos is more secure than Bitcoin, they don't even know what they are talking about. Accordingly, the reason why ploutos is more secure than Bitcoins is because we don't know Satoshi Nakamoto compared to Ploutos coin. He has really proven that he doesn't understand the word decentralization. It's a shame statement if that is his reason why he think ploutos is more secure than bitcoin.

He is even proud to compare ploutos coin to Bitcoin and hope to even reached Bitcoin's all-time high price of almost 1 million pesos.

I bet any ploutos investors, "Muputi nalang ang uwak dili ninyo malagpasan ang price sa Bitcoin"

Wake up people! They are just using the popularity of Bitcoin and using it to explain Plotous Coins which is really way different that ploutos coin might not even be qualified to be called a cryptocurrency and undergo the so-called ICO or initial coin offering.

If you cannot undertand my language because some of it are too techie for you, then might as well read the warning given by the Securities and Exchange Commission (SEC) against the maker of Ploutos Coins Freedom Traders Club from the link below and has also been shared by the PNP Anti Cybercrime Group - Region X

SEC Advisory Against Ploutos Coin Investment