Is Bitcoin a Scam?

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Bitcoin works quickly, knows no boundaries, and its transactions can’t be canceled. But, unfortunately, these qualities attract not only us and you. Since its inception, Bitcoin has grown in price by one and a half million times. No other currency in the world has had such rapid growth. That is why now we can say that this cryptocurrency occupies its own niche in the global economic system. However, until now the answer to the question “Is Bitcoin a scam or legit?” can’t be given. Experts, economists, businessmen and entrepreneurs can’t agree on a single opinion. And in the meantime, people continue investing in this project and it is becoming more expensive.

What is Bitcoin?

This is a digital (virtual) currency. One unit is a coin. The name uses the crypto prefix because the cryptography technology is used. Each coin is protected from forgery because it is encrypted information that can’t be counterfeited. It is very similar to ordinary electronic money, right? But unlike them, the cryptocurrency is emitted in the network so it has nothing to do with ordinary money and doesn’t even depend on the state currency system. Given the constant fluctuations of different currencies, this sounds nice. Bitcoin is a completely virtual digital currency, created by the Japanese Satoshi Nakamoto in 2008. He wrote a client program to work with Bitcoin, published a description of the basic operating principles of the system on Bitcoin.org and disappeared in 2010. Now the project is supported by volunteers. Nowadays many people think that Bitcoin is a scam. But is it true?

The peculiarities of Bitcoin:

  • Its independence from any money center that issues currency, as well as from banking and other financial systems.
  • Bitcoin is not regulated by the regulatory authorities. This, as fans of this currency believe, makes Bitcoin independent of any political and financial crises.
  • You can get Bitcoin coins from anyone – buy them from others, exchange them on the stock exchanges or create them by yourself using special software that generates this currency. This process is called “mining”. By the way, many people faced Bitcoin mining scam. So, you should be aware. And also, to emit coins, you will need a powerful computer.
  • These coins can’t be spent twice, they are all signed digitally.

Theoretically, the possibility of issuing Bitcoin is still limited: now about 6.5 million coins are circulating in the system and there can’t be more than 21 million coins issued.

Is it possible to consider Bitcoin a real currency?

Currency can be called any means for which you can legally make payments in a particular state. The government itself establishes currencies in its own countries. But what about Bitcoin? You can come to the store and buy any set of goods that lies on the shelves for money. But here you can’t directly pay with the crypto-currency: you have to do this beforehand with the help of special services. So, is Bitcoin a scam? It is hardly possible to talk about this, judging only by this factor. Bitcoin is used all over in the shadow sector of the economy (because of the possibility to remain anonymous when using it). However, the fact that it can be used in some areas doesn’t make Bitcoin a valuable currency. However, some states have already taken Bitcoin into account as a new type of currency. That is, it is actually regulated by law. Countries such as the USA, Canada, Belarus, Japan have already taken the first steps towards convergence of their economies with digital money.

Bitcoin: scam or legit?

Bitcoin is growing in price every day. However, the reason for this is the hype of users. The more people buy coins, the faster it grows in value. This causes even greater demand and creates a new wave of traders and investors ready to buy Bitcoin. But it may happen that, at some point, no one else will want to buy coins. Everyone will understand that their cost is greatly overstated and there will be a sharp price collapse. Any cryptocurrency (such as Bitcoin itself) is much trickier than financial pyramids. And the dissemination of information has a viral character, tied to the world economy due to the word “currency” Bitcoin is not secured by anything, but due to the change in the rate and conditions of mining, it has already become unprofitable to use even powerful computers. This infection provokes people to create viruses.

You can argue – they say that those who began to mine the cryptocurrency from the day of its foundation, earned a good job, and spent a penny on it. But the point is that they, the “explorers”, interested the rest of the world and attracted investments so that they could get their “honestly earned” money.

In world history, you can find many cases of financial scams when people are ready to invest in something that had no real value. So, for example, it was during tulip mania in the Netherlands in the 16th century. The demand for tulip heads increased thousands of times due to the speculation of some traders. Then for one year, many managed to invest in this “business” and burned out. Others received a lot of money from nothing. According to the latest data, Bitcoin, in case this is still a scam, will be the largest case. Today, millions of people have managed to invest their investments in the cryptocurrency and continue doing so. All financial pyramids have some common features, according to which it is possible to calculate such cases. So, for example, the increase in the price of a product will always add an agiotage, based on the expectations of people who think that this product will grow in price for a very long time (if not always).

Another sign that Bitcoin is a scam is the unreasonable high price. Once again, let’s take as an example tulip mania in the Netherlands. One bulb of a flower could be sold on the market and sellers bought houses or, say, ships on this money. A similar situation was during the recent dot-com crisis when companies traded shares at fabulous prices. But all this invariably led to the collapse. This was another Bitcoin cash scam. There is an opinion that a similar situation is happening now with Bitcoin. Today, you can get almost 10 thousand dollars for one coin. But on what fundamental principles is this price built? What is its basis? The answer is difficult to find.

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Well, now you can make up your own opinion about what Bitcoin is. Whether it has a future or is just a scam. And on the basis of these factors, make a decision on investment. In many ways, this looks like just a financial scam, which can grow until the price tag becomes completely unrealistic. Then, mass sales of this currency and loss of huge sums of money will begin. On the other hand, many experts are convinced that cryptocurrencies have a number of advantages and such a payment method will be the main one in the world of the future thanks to them and the technology of blocking. And those, who don’t have time to buy coins today, are heavily fouled. We think that choice is everyone’s business. Yes, from the one side, there is the risk that can bring a lot of profit and from the other side – the fear of losing all your money. We wish you to make the right choice, whatever it is.