Bitcoin Review, SCAM Cryptocurrency or Legit Way to Make Money?
Bitcoin Review, SCAM Cryptocurrency or Legit Way to Make Money?May 24, 2017
Welcome to our detailed and informative Bitcoin Review and investigation: Have you ever asked yourself what is Bitcoin, and can I make money with it? Well, we have been receiving multiple queries about Bitcoins Scams and if this new currency can be trusted. We have also heard scary stories about hackers using Bitcoin as their preferred currency when they extort innocent victims via ransomware attacks. If you find all of this confusing and are looking for some clarity about Bitcoin, and how it works, Bitcoin alternatives, and how it can benefit you personally you have reached the right review.
According to Wikipedia, Bitcoin is the “first decentralized ledger currency” or blockchain. Cryptocurrency with the most famous, popular, notable and highest market capitalization”.
Well, what does all of that mean? It means that this currency is not exposed to the rules, fiscal regulations, and political agendas driving the more traditional currencies we all know. A Blockchain is basically a transaction which is recorded chronologically and publicly so people can evaluate and perform risk analysis on the currencies.
Who is Satoshi Nakamoto?
Satoshi Nakamoto is supposedly the name of the person who originally invented Bitcoin. It is said he is of Japanese origin, however this has yet to be confirmed. What we do know is that the people (or person) who invented this currency are cryptographers and computer programmers. Whoever the creator of this cryptocurrency is, he is now valued at 2.2 Billion Dollars and owns about 1 Million bitcoins. Regardless of who he or they are, the name Nakamoto has become synonymous with the growing trend of bitcoin technology.
Our fair and impartial Bitcoin review will attempt to dispel any myths and obtain the truthful facts. You’ll find out if Bitcoin is just another fad, a full-fledged SCAM, or a legit currency that can be traded and used for payments on a daily basis.
Cryptocurrencies & Blockchain
Bitcoin is a type of cryptocurrency that became decentralized in 2009. In theory, this type of digital currency essentially transforms the entire financial system from printing to accounting and conversions to a digital platform that is safer, less vulnerable to fraud or corruption, and easier to maintain and manage. This form of digital money is not to be confused with virtual currencies which have no value outside of the internet.
The bitcoin systems are managed through the use of blockchains, which are simply databases of information that continuously grow as more blocks of information are recorded. The blocks of information being recorded for our case here, involve the creation, distribution, and usage of bitcoins. Every time a bitcoin is produced, distributed, or transferred, the transaction is recorded. Blockchains are protected by extremely high-end security features, include a time stamp, and are tied to the previous block of information. These features secure the entire system since there can be no tampering or altering of data within a block once the data is recorded. To further the security of the system, the entire chain of information is made public, so anyone can access and see the information at all times. The system is therefore maintained autonomously and openly, so every transaction has a record.
What is Bitcoin Mining?
Bitcoin mining is the process of adding new blocks of information to the public blockchain ledger that constitutes the bitcoin logs. This also includes creating new bitcoins. Unlike traditional currencies which are printed based on a decision by the central government, bitcoins are produced by mining software and each time a new bitcoin is produced, it becomes harder to generate new ones. This effectively regulates the value of these coins, ensuring issues like inflation or counterfeit do not occur.
What is a Bitcoin Exchange and How is it Different From Traditional Currencies?
There is a lot in common between bitcoin and traditional currencies. For example, bitcoins are found all over the world and can be used to pay for many items. There are even bitcoin casinos that run exclusively on this form of currency. As with other global currencies, bitcoins are found in the public stock market and available for trading. There are also some slight differences that traders should be aware of when opting to deal in digital versus traditional currencies. For example:
- There is no risk involved that fraudulent trades may occur when trading in bitcoin digital currency. Meaning, if a trade is placed, there is no risk of the other parties involved not paying up as is the case with standard Forex trading. This makes some trades much more profitable than in the standard market.
- The entire system is completely transparent and consistent, something all traders can appreciate.
- Not all currencies can be traded for bitcoins. The ones generally accepted include USD, EUR, JPY, GBP, Russian rubles, and Pecunix Gold.
- There is a slightly higher risk of charge back frauds (disputed transactions) since you are trading a hard currency for a soft one in certain situations. PayPal scams are frequently the source of such fraudulent charge backs.
- There is a greater tendency for bubbling up market before a crash with bitcoins than with more traditional currencies. On the other hand, with the current global economy in flux, bitcoins have been somewhat of a more reliable investment than many of the other common currencies available. During the Brexit crisis, for example, many currencies were converted to bitcoins to protect the investments from devaluing with the drop in the EUR’s value.
- Accessibility to this currency is more limited, with only a handful of bitcoin exchanges and bitcoin brokers available to trade in bitcoins.
Centralized Versus Decentralized Currencies
Simply explained, centralized currencies are controlled by a central governing body, generally the government of the country. This body manages, controls, regulates, and is responsible for the currency and its value. Bitcoins are decentralized, meaning there is no central governing body controlling the entire process. Available to the public via the internet, and with a globally-accepted value, bitcoins are decentralized. Many of the services involved in bitcoin currency are centralized though.
There is generally some combination of exchange, withdrawal, and deposit fees. However these fees are often waived or reduced for larger transactions.
As mentioned above, bitcoins run on the blockchain system, making the transactions safer and more secure than the average financial transaction. The sophisticated algorithm involved in each transaction, along with the high-level encryption, ensures maximum security.
Why Are Governments Afraid of Bitcoin?
The real reason governments are afraid of the bitcoin is because there is essentially no difference between this form of currency and traditional ones. After all, the reason bitcoins are valuable is because people trust that the backers behind the digital currency will value these coins. In essence, that is the same for any government or currency around the world. The dollar only holds as much value as the people attribute to the government to come up with if asked to.
This is why global currencies rise and fall, why markets are bullish and bearish depending on traders’ sentiments, and why the entire trading system is held at a precarious balance at all times. Governments fear that bitcoins will gain popularity among the growing technology-loving generation, who just might begin to put more faith in their digital currencies than the greenbacks that Fort Knox is printing to date.
The legality of bitcoins varies from one location to the next according to that country’s regulation laws. In general, trading in bitcoin is not forbidden in most countries, the various regulatory implications and monetary value of the currency fluctuates according to jurisdiction.
Alternatives to Bitcoin
Bitcoin is but one of many cryptocurrencies available today. Other options include Litecoin (LTC), Ethereum (ETH), Zcash (ZEC), Dash (AKA Darkcoin), Ripple (XRP), Monero (XMR). Each has its own benefits and a growing audience which supports it.
Why are Bitcoins Used by Ransomware Hackers?
Among the highest complaints against bitcoins is that the currency is frequently used for illegal purposes such as ransomware and spam. Hackers love bitcoins for two reasons:
- The system is decentralized, with no middleman in between, so illegal transactions are quick and easy to execute, with no questions asked. Bitcoins have the anonymity that hackers love.
- They’re easy to convert and can be used all over the world and for many different uses.
Simply put, bitcoins are the preferred currency of the dark web crawlers who are out to steal money. There are services such as bitcoin mixer and torwallet which employ “mixing algorithms” and make transactions completely untraceable and impossible to detect. These are the types of services the hackers use to hide their tracks, but it has nothing to do with the actual currency.
Is Bitcoin a Scam?
Bitcoin in and of itself is not a scam, it’s merely a genuine form of currency that you can choose to trade in or not. Just like with real money, there are always people who will abuse the system. There are those who abuse it and usually if falls under one of these categories:
Bitcoin Phishing and Impersonators: This is very common on Facebook and fake new articles where someone poses as a legit Bitcoin broker and illegally solicits you.
Flipping Scams: This is where you are offered an immediate way to exchange your BTC for USD or EUR. Then they just steal your money.
Pyramid Schemes: This is where you are asked to invest with BTC and your money is sucked into a big pool of other investors with little or no chance of getting it back.
If you are not sure if you have been targeted to be a victim of a Bitcoin scam, simply contact us for a free consultation.
Other Bitcoin Scams
Here are a few of the well-known deceptive bitcoins scams that are run by con artists just out to steal money. Don’t let their misleading lies and deceptive advertising practices trick you into depositing with their programs.
Bitminer, Startminer, Kryptotrend, h1z1cheats.com, Bitcrypt.io, Bitsilver.biz, Ztrapay.com, GUS Finance, Flexibit.biz, Dripcoin Mining, and Bitcoin Unlimited (partial list). The common denominator with all of these schemes is that they have been set up to accept money but not payout.
Bitcoin Review – Summary and Conclusions
There are a few select bitcoin brokers and exchanges which are considered legit, however we recommend Etoro as it is the only regulated platform we are aware of which offers this cryptocurrency and has been around for ages. Etoro also offers Ethereum as mentioned previously, so in this context we feel very comfortable endorsing it. There are various other Bitcoin brokers and platforms, however those are still relatively young so they haven’t been tried and tested fully, making it difficult to do a full-scale comparison. Additionally, we recommend you don’t believe the fake reviews or fake testimonials out there that are generally just misleading and deceptive ploys from affiliate marketers. Some bitcoin stock exchanges do boast convenient features such as auto-pilot and demo accounts – and these are what you should look out for when choosing a trading platform. The concept of bitcoins is a breath of fresh air for anyone who is looking for a new or interesting trade option, or for something that isn’t tied to the centralized governments that have a precarious hold on their currency markets, so in this context we feel very comfortable endorsing it. Again, should you have and questions of comments feel free to reach out and contact us via our Facebook Page and YouTube channel.