So is Bitcoin a Scam?

Updated: May 2, 2021

Every day I still meet new people who still think Bitcoin is a Scam?


Let's lift the bonnet on the Bitcoin network, where it's been and where it's going.



Exascale computing power


Bitcoin is the largest distributed computer network on the planet with no central office, no CEO and no Central Bank controller. Its computational power is immense. The network has exascale computing power capable of a quintillion floating point calculations per second. That is BIG. (Ref QZ.com)


The Trillion $$$ Asset Class


The value of the Bitcoin Network sits at over $USD 1 Trillion. Its entry into the Trillion Asset Club has been the fastest for a major tech company that we have seen. Visual Capitalist provides a great view of where Bitcoin sits on a Global Scale.



The Microsoft Identity System and Bitcoin


In March 2021 Microsoft's Decentralized Identity team launched the ION Decentralized Identifier (DID) network on the Bitcoin main net. This network is a layer 2 technology similar to Lightning except that instead of focusing on payments it uses Bitcoin's blockchain to create digital IDs for authenticating identity online. (Ref nasdaq.com)


https://www.microsoft.com/en-ww/videoplayer/embed/RWAn4H?autoplay=true


The Masterpiece of Monetary Engineering


In March 2021 Michael Saylor, CEO of MicroStrategy took his corporations 25 years worth of savings, their total cash reserves, totalling around $500 million and took a bet investing it all into Bitcoin.


In one of the greatest interviews in Bitcoin's History, Coin Telegraph digs deep as to why Michael Saylor took such a radical step:


https://www.youtube.com/watch?v=57B0XMHmBb0


Digital Assets and the Future of Banking



You have to ask yourself - Why are major banks like BNYMelon, JP Morgan, Singapore's DBS, PayPal, Visa, Mastercard, corporations like Tesla, high worth family offices, hedge funds, pension funds and your neighbour willing to trust the Bitcoin network?


Michael Shaulov, CEO and Co-founder of Fireblocks, explains Bitcoin as a unique asset that is proving to provide a new store of value as a reserve asset class that now rivals to gold, stocks and real estate.


Bitcoin's technology creates a digital representation of a financial instrument on a ledger that is immutable, distributed and allows a transfer of the value of that asset on a global scale.


What comes next is how Bitcoin and other cryptocurrencies are bringing us DEFI (Decentralised Finance).


For the latest insights form Michael Shaulov into the future of banking take a listen to what BNYMelon are up to:


https://www.bnymellon.com/apac/en/insights/perspectives/digital-assets-and-the-future-of-banking.html


Bitcoin offers real time transfer of value


Have you ever sent money over seas? How long did it take? How much did it cost? The current SWIFT Banking system does not offer transfer of value in REAL TIME. When you send a transfer of value via the Bitcoin Network you receive confirmation within about 10 minutes.


The FREE to ALL Global Monetary Network



Most of us take for granted that we have an identity, access to the traditional global payment banking system and payment gateways. Not everyone has that luxury. In 2017 the world bank reported that.


Globally, 31 percent of adults are unbanked. That is 1.7 billion people.



Regulation


Bitcoin is not an anarchist asset. The ledger is a public blockchain with total transparency. It would have to be the worst monetary network for criminal activity that tarred its early history with the likes of the SILK ROAD project.


The world is a regulated place. As the asset class rises in value, responsibility is expected to protect the customer of the Bitcoin Network. KYC and AML are part of the global system in place to protect us from the "Bad Guy". Access to Bitcoin is heavily regulated globally, the same as applies to any bank.


In comparison, the world's largest banks including Australia's own breach regulations on many fronts the likes that dwarf any criminal activity via the Bitcoin Network


4 June 2018 "AUSTRAC and the Commonwealth Bank of Australia (CBA) for a $700 million penalty to resolve Federal Court proceedings relating to serious breaches of anti-money laundering and counter-terrorism financing (AML/CTF) laws."


Sept 23 2020 " Westpac to pay record $1.3bn fine after money laundering and child exploitation investigation" The Guardian



So where is the Bitcoin Scam?


There are a host of "Bitcoin and cryptocurrency scams" floating around in the market.


So how do you pick a scam?


Emails, social media posts, YouTube ads, celebrity testimonials, refer a friend networking scams, this is where scams live and thrive. Anything that says pick up the phone, open a free account now, has an offshore holding company could potentially be a scam.


Common scams in Australia include - Bitconnect, USI tech, OneCOIN


What not to do when it comes to Bitcoin?

  1. Do not trust anyone claiming they will give you help to buy or mine bitcoin

  2. Avoid URL web links associated with celebrity advertising amazing returns and bitcoin offers.

  3. Be very careful liking social media accounts that look like regulated bitcoin brokers, trading platforms, and exchanges by only linking to their site from their confirmed web link.

  4. Stay away from any financial transactions, bitcoin or otherwise, that come via direct message on social networks, emails, text messages.

  5. There is no such thing as making more out of your Bitcoin. Stay right away from Network marketing Bitcoin or other cryptocurrency plans. They are everywhere even here in Agnes Water.

For more

https://www.finder.com.au/bitcoin-scams

So how do I safely get onto the Bitcoin Network?


Australia has a number of regulated exchanges that allow you to sign up, log in purchase Bitcoin and other cryptocurrencies. Some Neo banks like Revolut, apps like PayPal, Square and ABRA also provide access to acquire Bitcoin or synthetic representations of Bitcoin.


Exchanges with $AUD OnRamps


Coinspot - Easiest to use but high fees and large spreads

Swyftx - Preferred by business investors and SMSF - Moderate Fees Easy Interface




Binance Australia - Cheapest - High Liquidity and The largest Bitcoin and Cryptocurrency Exchange in the world




Is the Bitcoin Train is leaving the Station?



An avalanche of institutional money is knocking on the door for Bitcoin. On 4 March 2021 -- Michael Novogratz, a long-time proponent of cryptocurrencies through his firm Galaxy Digital Holdings Ltd., said banks desperately want in on Bitcoin. Every major institution is short on this asset. Mike says this a once is a generation event in the adoption of Cryptocurrency. (Ref: Coin Telegraph)


He speaks on "Bloomberg Technology."


https://www.youtube.com/watch?v=9BXyLAg5xjQ

So is Bitcoin a Scam?


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Disclaimer


The information and opinions contained here are intended for informational research and educational purposes only and should not be taken as any sort of financial or investment advice. Always DYOR! Get Educated and play safe in the Cryptocurrency world.


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