Scams have been part of human history. Ever since the beginning of currency, people have been trying to defraud each other. And with the advancement of technology, the scamming tricks have also become more raveled.
When it comes to currency related scams, Bitcoin tops the list. The currency is relatively new but holds incredibly high value in the market. Moreover, generating personal bitcoins is extraordinarily hard. So, the scammers use different techniques to steal hard-earned coins of other users. (Want to earn some bitcoins, here is everything you need to know about how to earn Bitcoin fast and easy).
Here are the most common scams that the bitcoin users should be aware of.
Scenario #1 – Wallet Scams:
If you are a bitcoin user, you would know that a Bitcoin wallet address serves the same purpose as a traditional bank account. The difference is that it is used to store bitcoins – and not the fiat money.
Since Bitcoin is all about anonymous transactions and the anonymity is gained through bitcoin wallets, the scammers hit this feature particularly by developing fake wallets.
Then they try to sell these wallets to users with a promise of 100% anonymity. The program initially seems to be working fine. But to your surprise, the trickster behind the scenes has been transferring coins from your wallet to his own without giving away a single hint.
So, being a Bitcoin user, it essential to acquire a wallet from trustworthy sources.
Scenario #2 – Scam Through Ponzi Scheme:
One of the most common Bitcoin scams. In Ponzi scheme, the con artist promises high-interest rates on deposits you make.
People who join the scheme early are paid out using the money of those coming in later. This goes on until the point where there are no more new entries.
Once the entries stop, the payments also stop and users start realizing the losses.
Scenario #3 – Bitcoin Exchange Scams:
Bitcoin scam exchanges sell the cryptocurrency at current market rates. Most of the exchanges working out there are genuine and possess now security threats to users. However, a small portion of exchanges does not work that way. Their sole purpose is to steal the digital currency and fill their own pockets.
Such exchanges charge extremely low fees when a customer is looking for credit card processing. However, after the card is processed, all the money is gone and the user is left with no bitcoins.
So, don’t always go with the cheaper options.
Read our guide on what are the biggest Bitcoin exchanges in the world to trade safely.
Scenario #4 – Phishing Scams:
The scam involves users receiving fake emails – stating that they have been awarded or have won bitcoins. But to receive the reward, they are asked to reach their wallets through the link given in the email.
DO NOT CLICK THAT LINK – or you will end up losing all your coins.
These are some common scams that go around in Bitcoin world. All it takes is a bit of common sense to realize true intentions of someone you are dealing with. And if you are just starting your bitcoin venture, it’s necessary that you are aware of these bitcoin scams and know how to tackle with the tricky situations that may arise during a transaction.
Tags: Bitcoin wallet scam
Marc Kenigsberg, The CEO of JamWorx states that the Recent drop in the Bitcoin price is a slight retreat from the highs of 2017. In Kenigsberg’s views, there are two main factors which are causing to reduce the value at the moment: Some of the speculative money invested in the last few months by some external investors have reserved off the tables as profits.
The market is still behaving to Bitmain’s threat strategies and the threat of a possible hard fork as a reprisal for UASF.
Bitcoin is ultimately almost 150% YTD and I’m not worried at all. Obviously, the basics are strong and the demand for Bitcoin is increasing.
Image Credits: coinjournal.net
What Is the Best Time to Buy More Bitcoin?
Marc also describes that the merchant adoption for Bitcoin is at all-time high and the ecosystem is analyzing record amount of everyday transactions.
Furthermore, an extensive interest is in Bitcoin as a way of payment and there is a fundamental understanding of what it can do.
Marc also explained that if more merchants will accept Bitcoin, then more people will use it and more people will want to get it than ever before. The increased price of Bitcoin is a correction of the aspects that underestimated the price of Bitcoin.
He also advised the community that not to sell Bitcoin and hold them since the price of Bitcoin will surely go high soon.
He further recommended as now is the best time to buy more for everyone that can. From his thinking, a price tag of $2500 may seem an expensive to people today, but it is going to look cheap in a year from now.
Did Speculation Push the Price of Bitcoin?
Marc disagreed that the last price rally of Bitcoin was just because of the speculation. Moreover, he explained that there is a speculation in almost every currency of market but it was not the key factor to increase the price. He also described that the increased price has been the main catalyst for the speculation.
He believes that the world is going to accept and understand Bitcoin as an effective payment method and this is the point which is driving the price up.
Story Credits: Cointelegraph.com
January 3 proved to be a historical day for Ripple. The crypto became the only currency after bitcoin to have a market cap of over $100 billion. At the time of writing, the valuation of Ripple is ~$121 billion.
$19 Billion Surge In 24 Hours:
Ripple’s native token, XRP, went up by more than 24 %, taking the coins value to $3. The huge value surge saw the valuation of ripple go from $95 billion to $116. As a result, Ripple further distanced itself from the third top cryptocurrency, Ethereum, and solidified its spot as the second most valuable crypto after bitcoin.
The daily trading volume of XRP is vigorously amassed in the South Korean market. Korbit and Bithumb are handling 40 percent of worldwide Ripple exchanges, representing more than $2.2 billion of Ripple’s daily trading volume.
On Bithumb, the second biggest digital money exchanging platform on the planet situated in Seoul, South Korea, Ripple stays as the most exchanged crypto, recording daily trading volume that is three times bigger than that of bitcoin.
Despite being the biggest and most liquid Ripple trade market, XRP is being exchanged with a high premium inside South Korean digital money market. On Bithumb and Korbit, Ripple is being traded at $3.5, with a 12 percent premium.
Brad Garlinghouse, the CEO at Ripple, and responsible for the advancement of the Ripple blockchain network, expressed that the “genuine use case” separates Ripple from other computerized assets.
However, as with any other digital money, Ripple met with some criticism. On January 3, P4man expressed that the vision of Ripple to develop into Swift 2.0 isn’t reasonable because for Ripple to become a Swift-like network, banks will need to pick up control over it.
“As for the moonshot of replacing Swift; most importantly, I have doubts over a worldwide agreement protocol being the correct approach. Banks presently control Swift. How likely is it they would give up control to a little startup and allow themselves to become indebted to its private currency, that they have no need for?” wrote P4man for Coindesk.
Story credit: ccn.com
Image: Google images
13 July 2017, It pays to be the Bitcoin sign guy. Don’t believe? Look up the new data released by Blockchain.
Yesterday, Bitcoin world was humming during congressional committee by Federal Reserve chair Janet Yellen. Where the image of sign speedily gets viral in few hours, yet the attendee with his partner was eventually asked to leave by a staffer.
After his arrival, it emerged that the solitary is a friend of cryptocurrency broker who tweets under the knob CryptoEthan. He also posted a picture, soon he will recognize as Bitcoin Sign Guy. In addition, he will have the complete authority to share Bitcoin and hold the now-infamous sign as well.
Although, his gathered address is 6.32570673 BTC, with the amount under $15,000 at the existing price. whereas, it holds the transaction with 556 number according to blockchain.info. That was small in scale with a 1BTC contribution.
Later on, that photo was deleted at Bitcoin Sign Guy’s request. This viral activity drove numerous scams tries with photoshopped versions of the original picture.
Story Cerdit: Coindesk
Talking about the modern and its modernized developed ways, the hottest talk of the town has been bitcoin for quite some time now.
The cryptocurrency was developed by the pseudonym, Satoshi Nakamoto. This decentralized and decartelized digital currency is free from the regulatory control of security institutions and government controls. There are no third parties involved. The value is completely and solely set by the supply and demand of the market. The underlying algorithms generate mines, which are worked out to obtain Bitcoins as a reward. It is a digital alternative to paper money working on the peer-to-peer basis.
Buying things with Bitcoin
After the first introduction of Bitcoin to date, there has been a gradual and cautious increase in its acceptance and endurance. But the people are taking the currency with a bigger heart. By the passing time and its ability to prove itself, more and more commodities are coming at front accepting the Bitcoins. Included in these names are a few hi-fi names. These include Virgin Galactic, Lamborghini and not forgetting Mel B.
Bitcoin mining is an algorithmic computer-based process which verifies and secure the Bitcoin transaction. The Bitcoins are mined by solving complexed mathematical problems. The process is called mining as these Coins are to be extracted from the system for usage. A collective group of the transaction is called a blockchain. They are known as chains as they are secured and built on top of each other by the miners, forming a chain. These blockchains confirm the transaction in the whole network when it has taken place. When a miner solves the puzzles, they are rewarded with a small number of bitcoins. That’s how new coins are introduced in the system.
With its extremely volatile and unpredictable nature, Bitcoins prices go back and forth in monetary values. These values are decentralized and depend entirely on the users and coin holders. How they respond to these in a span of time will determine their value during that time. There has been an unpredictable rise of up to $1000 and dropping it down to $2 even.
Bitcoins and Bankruptcy
Following the term ‘speculate to accumulate’, there are numerous speculators supporting the cryptocurrency. This digital currency is equally very risky to handle when not dealt carefully and with precautions. In 2014, Mt. Gox had to face serious issues mishandling or possibly theft against these coins worth $450 million. They were forced to file for bankruptcy protection keeping in view the intensity and strength of the damage.
Banning the Bitcoins
With its ability to be decentralized, it has been a concern for the security and political institutions. Challenging their authority and regulations different countries are responding differently regarding its engagement. Being the first in line, Thailand completely banned the currency usage by July 2013. Later the ruling and practice were relaxed keeping in view the devoted interest and attention of the people. China and Japan comparatively have some what proved to be biggest supporters of the currency, followed by the U.S.
Know your Limits
The process of mining is through which coins are awarded and are being introduced in the system. But there is a restricted number of bitcoins to be available ever. There are only 21 million Bitcoins that may exist ever. The production rate by mining is 12.5 today. This production rate is halved every four years to regulate to ensure the sustainability of the value of every Coin. By around 2140, all of these Bitcoins are expected to be mined. Meanwhile, the miners will be awarded by transaction fees for their efforts. On an estimate, 64% of the total mined coins sit uncirculated with the holders, with the optimistic hopes of greater profits.
One of the most controversial organization, WikiLeaks has shown great dependence on these Bitcoins and other cryptocurrencies lately. Due to the unfavorable response from the other third parties, they started the usage of these secure decentralized futuristic form money for the donation.
SilkRoad was the very first of its kind platform for the black market. A number of illegal and unauthorized practices were done using Bitcoin. A lot of people were attracted to use this site heavily was due to its anonymity. When the founder Ross William, aka Dread Pirate Roberts was arrested, his estimated was so massive that not all of it was possibly be accounted for.
In 2009, after Satoshi Nakamoto launched Bitcoins, he passed the majority of its control to the scientist Gavin Andreson. According to the scientist, the perfect words he has for Bitcoins is, ‘Better Gold than Gold’. Nakamoto is expected to be in possession of around 1million Bitcoins which means $1.1 billion. The identity of this is still a pseudonym. Other theories suggest that together the companies Samsung, Toshiba, Nakamichi, and Motorola are the founders of this cryptocurrency. but none of the theories has been proven to date.