Non-centralized currencies are often appealing because of the general level of anonymity they provide. In fact, the key point of using these currencies is often that they are outside of the control of major entities that can violate one’s privacy. This is a double-edged sword, though, as this lack of control can attract fairly unpleasant individuals to the currency. One of the major problems that has surrounded BitCoin over the course of the last year is the fact that it is frequently used in scams. The unsavory reputation of the currency has caught up to it, and now consumers might be paying the price.
Bitcoin Criminals Continues to Scam New Users
The scams that tend to use BitCoin are, perhaps surprisingly, not terribly innovative. The vast majority of the scams take place on social media and involve trying to convince people that they will receive a payment in BitCoin for certain actions. Sometimes, these scams net the scammer standard currency but often the real goal is to get the personal information of the person being scammed. While BitCoin itself is not the culprit here, the environment that has sprung up around the cryptocurrency is largely to blame for both the ease of scamming others and for those who do the scamming.
BitCoin has long since established itself as a truly anonymous currency, to the degree that no one actually knows who founded the currency itself. This has led to many proponents of privacy rights using the currency, but it has also created a culture where those who use BitCoin see themselves as above the law. This is why the coin is so popular among those who commit crimes online, as it is both an untraceable currency and one that encourages its community to keep quiet. There are many who use BitCoin legitimately, but even they do so in an atmosphere of extreme distrust.
Bitcoin Lesson Learned: Avoid the Currency
The lesson to look for here is that a currency that provides no rules or framework is a currency that all but encourages crime. Whether this is using the currency to traffic in illegal items or to steal the information of others, there has to be some form of oversight. That’s why currencies like OneCoin are so important – they employ Know Your Customer protocols, so that all parties involved in transactions are protected. It’s important to remember that a cryptocurrency, like a standard currency, always relies upon trust to have value.