crypto scam history

Not all the people who end up pulling off cryptocurrency scams are amoral businessmen or investors. Many crypto scammers are just plain old con artists and fraudsters. When you go to the market to buy a hat, you get a hat. When you send money to buy Ethereum (or any token for that matter) you could end up with a worthless ETH token eventually.

A Brief Overview of Crypto Scams

Many cryptocurrency scams are done by convincing other Bitcoin or cryptocurrency traders to not take advantage of the true value proposition of Bitcoin. They tell people that even though they shouldn’t trust any third parties, that this guy is ok and you can trust him (*cough cough* Mt. Gox *cough cough*)

Other crypto scammers convince their victims to play ‘investment games’ that always end up being Ponzi Schemes. Howdy, Bitcoin Savings and Trust. A funny investment game that ended up being a scam, was Ponzi.io. While scams are never usually a funny thing, I think we can all agree that anyone that fell for this kinda had it coming.

If you’re thinking no one could have possibly fallen for that, you’re wrong. The Bitcoin address owned by the guys at Ponzi.io (1ponziUjuCVdB167ZmTWH48AURW1vE64q) managed to earn almost 350 BTC with this scam.

Malice..

The worst of them all, are the ones that are malicious. Many scammers have resorted to using malware and even ransom in order to get their hands on crypto tokens. An example of this would be CryptoLocker. They infected people’s computers by encrypting their files making them inaccessible to the user unless they paid a ransom for the private key within 48 hours.

Crypto scammers like this have been known to resort to blackmail. For example, on September 8th, 2014, a hacker managed to get access to Satoshi Nakamoto’s email account and used it to deface the Bitcoin sourceforge page. In addition to this, it is rumored that he also found the real name of Satoshi Nakamoto. Be that as it may, all that a vice article managed to get out of him was is that he did it for “The Bitcoins, obviously… (But) don’t forget the lulz.”

Also, don’t forget how many celebrities have had their nude photos leaked just for some bitcoin. Crypto scammers have no rules when it comes to acquiring more bitcoin. Everyone is familiar with how these people think. You may not have outright defrauded or hacked someone, but I’m sure you’ve taken advantage of someone’s short-term thinking at least once in your life.

The Vendors Too?

Finally, sites like Newegg, *insert better web links or even sponsors as other sites here* and other major retailers have begun accepting Bitcoin. Now everyone can spend their Bitcoins! Right? Not quite… Let’s think this through.

It’s definitely true that merchants have every reason to accept Bitcoin and cryptocurrency as a method of payment. There are many benefits that come with accepting cryptocurrency in your store. In fact, BitPay even offers 0 fees for crypto payment processing. As well as feeless payments, merchants also lose the risk of getting chargebacks once they start accepting crypto. For some vendors, import/export is important and they have international clients. Accepting cryptocurrency would make these cross border payments much easier and far cheaper.

In addition to this, vendors can pass all of their savings onto their customers, or decide to increase their profit margins. The decision to hold onto their Bitcoin / Crypto assets as they accrue could see them earn more gains as the price of Bitcoin increases over time. After all, Bitcoin has a supply cap of 21 Million. If adoption increases globally, there will only be a few Bitcoins to go around. As a result, they will increase in value.

Vendors are in a good position. They’re able to save some money on running their business, and they can accrue bitcoins with retail goods, just as people purchase bitcoin with fiat currency.

Crypto Adoption 101: By Newegg

Shoot, if I had a store of my own, I’d probably try to convince people to use bitcoins; stating that spending bitcoins in my shop is good for Bitcoin as a whole. Far better than you saving your coins and simply speculating. I mean hey, “Bitcoin could become worthless overnight” and “its future depends on it”. To be honest, I may even say things like:

[My] shoppers are among the first wave of Bitcoin users and we’re thrilled to accept the cryptocurrency as a form of payment. Just like you, we also believe Bitcoin can be the future of digital currency. But if you’ve been saving it and hoping it will make you rich one day, you’re better off spending it if you want it to succeed.

Ok, by me, I’m really talking about Newegg. I still can’t forgive them for their blog post; “Why Saving Your Bitcoin is Not a Good Idea”. TLDR; Because you’re not spending it at Newegg.

You wanna know which merchants are the real scammers? The ones that sell the bitcoins they get straight away. These people scam you out of bitcoins they don’t even want.

But it’s still a good thing

While merchants adopting crypto for the wrong reasons has it’s downsides, it’s not all bad. In other words; if you’re a HODLer, merchant adoption is a great thing. With more people using and transacting with Bitcoin and cryptocurrencies, demand goes up. When the Bitcoin network grows, the value does as well. Consequently, more miners will be able to re-enter the fray as a price increase would make mining profitable again.

Essentially, adoption means more users on the network. this makes for increased demand for Bitcoins, thus, making the price of Bitcoin rise due to its limited supply.

Regardless, this probably wouldn’t convince a HODLer to spend their bitcoins. What it actually means, is that he can spend those bitcoins. High demand for cash exists partially due to the uncertainty the uncertainty of future needs. Thus, the HODLer of this ‘cash’ believes they will eventually run into a currently unknown opportunity in the future that will better satisfy their needs than any of the opportunities that are currently present to them.

In the event that an opportunity arises that the hoarder believes benefits him far more than what the same cash can earn him in the future, he will be able to seize it.

HODLers are Crypto Scammers…?

The average HODLer is in a constant battle with themselves in order to lower their time preference as much as possible. This is the only way to optimize their crypto holdings. Many of my friends and I joke about starving to the current intense deflation. Though, I’d be lying if I said I didn’t wish I’d skipped a few lunches at my school lunch cafeteria to buy Bitcoins at $10 when I was able to.

While it’s true HODLers are excited when the Bitcoin prices increase, they are also happy when the prices go lower. Just months ago, you were able to buy a Bitcoin on iCE3X for $8,000. Now, we’re only asking for $3,450. Whatever the price is, the HODLer always thinks, “suckers”.

These guys are in it for the long game. HODLers have a simple plan. Buy low, sell high, but to buy anything at all, sell some highest. These people will do anything to bank more Bitcoins and crypto assets. For them, there is nothing that excites them more than a shmuck giving up the goods after being convinced that a Bitcoin is only worth $[x < moon].

To be honest, hoarders are potentially the most dangerous crypto scammers on the planet. Despite vendors and other crypto scammers being somewhat outright with their desire to acquire your bitcoins, HODLers aren’t always as explicit. People can prove they have the private key to some bitcoins, but they can’t prove they do not.

In light of this, it’s entirely plausible that some vociferous skeptic with a bold assertion against crypto is an evil villain, manipulating the market demand, and the price as a result.

…And You Should Be Thanking Them

bitcoin gif

HODLers are what gives money value.

bitcoin feed back loops

How to Win the Game

The crypto space is at arms, we are in a state of total war. Everyone who is holding bitcoin is attempting to accrue more by scamming other people out of theirs by convincing them it’s not worth looking into.

Shoot, at this point, everyone who doesn’t have any Bitcoins was either scammed out of them or was scammed from even looking into it. That’s right, if you have bicoins, you’re a crypto scammer too. It takes a certain level of know-how and the desire to know more about its future, but not having them or spending them is to be without one or the other.

If you’re holding bitcoins, take a breath every time you decide to send some to another person. Ask yourself; does this person truly deserve the untold amounts of your future wealth for pouring you a beer? You may just tap in to that will power that makes us HODLers stay strong.

Hyperbitcoinization is coming, and it’s not a force to be trifled with. Even a marginal bitcoin holding right now could be a significant constitution to the majority of a Bitcoin hodler’s portfolio. When this day comes, there’s no going back. There will be a day where you will likely never see your Bitcoin balance move a decimal point move to the right ever again.

What will your next move be?

The term “Scammer” is used as a heuristic, not as an accusation.

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Disclaimer Notice:

This article is intended to educate and should in no way be seen as investment advice or an enticement to use the ice3x.com platform. Bitcoin is highly volatile with big profit opportunities but you should also remember that you could lose part or all of your investment whenever you take part in any high risk investment. Bitcoin trading is not a regulated industry in South Africa, which in itself carries additional risks. IF YOU ARE NOT AN ASTUTE BITCOIN TRADER, SEEK INDEPENDENT FINANCIAL ADVICE BEFORE MAKING ANY INVESTMENTS.