BitCoin Scam? Why the Possibility of BitCoin Holders May Be At Risk!
Could Counterfeit BitCoins and Alternative Cryptocurrency be on the Horizon?
Among any BitCoin Community, the love for BitCoin for those involved, seems to never fade. Recent developments and commentaries, such as Jamie Dimon, CEO of JPMorgan Chase, may actually have some relevancy. While many, just like us, we may feel that calling Bitcoin "a scam" was instead a ploy to drop the price, followed by purchases by JPMorganChase Securities, and other financial institutions, one thing stands out, in my mind.----Fake Bitcoin.
What do I mean by Fake Bitcoin? Well, irregardless of the Blockchain ledgering, the nodes, and the voters and several authenticity measures, could it be possible that a wallet transaction code could, in fact, bring in a Seller with fake BitCoin?
There are several reasons, why, in fact, many people could have grave concern about the "trading", "buying and selling" of BitCoin, among other virtual currencies and altcoins. That is, ask yourself this simple question: What would it take to employ and generate the same mechanics, such as QR codes, random passwords, and both, a receiving channel and sending channel to send and receive a coin or token?
It doesn't take a rocket scientist to know that the sending and receiving of "something" that looks and seems the same, is in fact possible. While some wallets and websites promote earning BitCoin, have you ever asked yourself, "could it be possible that because the BitCoin or other coins were not in fact done by mining, but instead another method, mean a coin, sotashi, or alt coin, could in fact be illegitimate? And, an even more popular question should be: "who has access to the actual ledger to determine its authenticity?"
In the former years that Ive spent as a certified fraud examiner, I also spearheaded a forensic auditing company, and my personal experience spans over 20 years in the financial sector and international banking law. Don't get me wrong, I love and share the passion of blockchain, smart contracts, and a finite digital currency. That, of course, is continually forward thinking.
However, think about who actually put these wallets, coins, tokens, and programs together? Will the CTO's and programmers expose themselves and EVERY source code, put into their entire infrastructure, even if they have used or offer open source? Could it be that the many of the same miners having something great in common; That of a technology driven mind, and even moreover, programming and hacking skills, a skill that may be more concerning than we think? Don't get me wrong, but do programmers have the upper hand in the cryptocurrency space?
After 20 years of observing and spearheading core information architecture, the developers and programmers I've had relationships with certainly have the very same things in common; a passion to make something great, be part of something exciting, many knowledgeable of making algorithms, and the knowledge and know-how to make sure their coding has certain methods to which can protect themselves. I have to wonder -----is the same thing happening with the generation of actual bitcoin miners, programmers and developers?
Lets discuss the facts:
1. It is a well known fact that the Bitcoin's inventor is a pseudo-name "Satoshi Nakamoto", and yet no one publicly has admitted to be that party.
2. By the 1980's over 80% of the trading volume of the stock exchanges were algorythmic/robotic trading.
3. The launch of Bitcoin mining, was conveniently started towards the end of 2008, during the mortgage crisis.
4. Several bitcoins have been hacked.
5. Several wallets have been hacked.
6. Several exchanges, including the NYSE and even the Credit Reporting Agency, and the largest retail stores, and data storage facilities have been hacked.
7. Several Cryptocurrency Exchanges have been hacked.
8. Several companies are offering Bitcoin without the need to mine anything.
9. ICO's have been halted in China, and the Securities and Exchange Commission is further examining these potentials, as well as other Countries.
10. Pump and Dump schemes are ever rising.
11. People are able to simply purchase Bitcoins with a Credit Card, and other payments at a swipe.
12. Several exchanges and wallets, continue to emerge, and show different prices for Bitcoin.
13. Let's not forget that even the ever popular and original Ethereum blockchain was also limited and hacked, as well as several alt coins too.
14. Many Debit cards and other Wallets offering storage of Bitcoins have failed, and many are discontinuing.
15. Some exchanges and programs have admittedly provided that they allow the Selling of Bitcoin without owning it ( a term known as "Shorting"), though the Sellers position has yet to be proven if he/she/it had Bitcoin to cover their short; nor is it regulated to know if the Shorter can and/or will make the position available. This means the rise for price manipulation and phantom volume is every apparent, regardless of the finite number of Bitcoins.
With the masses of people now entering the market place, trying to find the best bitcoin wallet and top cryptocurrency exchanges are rising rapidly. These same people are turning wondering how to buy bitcoin, and what to do exactly to get started. These are the masses, the same people who are seeking the best investment for 2017. With all the the given technology messes and the current environment, one may ask:
"What's in Your HOT/COLD Wallet?"™
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Tags: How to buy bitcoin, best bitcoin wallet, bitcoin news, trending news
Disclaimer: Nothing in this post is intended nor is to be construed as legal nor investment advice.
Copyright 2017 By Shawn Aaron, CEO and Founder of KushPay™. All Rights Reserved. [Dis]Claimer: Users and members of Steemit, Facebook, and Social media platforms may use, boost, reply, upvote, re-distribute this post among other platforms, and media channels provided that the entirety of this post is shared, and not just partially. KushPay is a registered trademark of KushPay Ltd. and it's respective owner(s) and assign(s).
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STOPGood Work keep it up
i just up vote you !
You can see my new post- https://steemit.com/crypto/@letsmakes/bitcoin-splits-as-new-currency-takes-off
Follow me @letsmakes
Thanks so very much @letsmakes. Feel free to ask any questions, follow @kushpay and resteemit Would love to get some conversations going on this very topic. Will check out your posts too! Thanks again!
Good Post @kushpay!!
Thanks @lykkejay
There seems to be a lot of haters or people that truly don't realize the specifics as to which I wrote and why. So to Clarify:
I am far from hating Bitcoin nor Blockchain. Yes, thank you to all those who mentioned my mispelling, as I mispelled, Satoshi, and referred at times to BitCoin, and not bitcoin.... thanks for the spelling error check.
I have not lost faith in cryptocurrency, nor bitcoin.. The article was not about me, it was about rogue programmers, miners and their advantage, hackers, and the so called "scam" Mr. Dimon suggested that bitcoin was referred to.
The article was merely identifying some of the potential reasons as to what may be concerning to the general populus...I call them "the masses".
I may have made some spelling errors, and I am very involved in blockchain. I speak with people nearly daily, and this is much of the feedback I am getting. The story did not call bitcoin "fake". It's the potential of rogue programmers, hackers and tech gurus and the elite to which I am concerned.
The article is a debatable article which is only to spur interaction and readership...it was in no way intended to create or hinder the beauty of blockchain, proof of work, proof of stake, voting power, master and supernodes, forming milestones and voting powers, etc and of course more than the what is in the scope of the article.
I love everything about new methods of stimulus. I am all about that and absolutely love this space.
I'm far from a hater. My concerns are for those that lose their hard-working funds to hackers, and the possibility of dilution of finite coins, as well as authentic companies/cryptos that are not reporting or telling truths.
The article speaks also about manipulation that exists and algorithmic trades to which also exist. For the newcomers, it's also about an ever changing marketplace. There are whales, including people I know, that have positions in cryptos, and they can move markets period.
It is with absolute respect and appreciation for your feedback. Again, the point of the article is to have these questions raised.
Yes, no one may have hacked into bitcoin. I simply discuss that at the same time, there are plenty of companies that are shutting down, getting themselves into trouble, and ripping off the very hard working people looking to get or work towards bitcoin. For instance: When one can short the market without proof of stake, this is a problem, period. And it happens on some of the very platforms many people are flocking towards. It sucks. And the fact that people behind exchanges, if not careful enough and without research may pay handsomely too much for bitcoin. I just read today that in Africa, there are sellers and exchanges showing at over 7k for bitcoin, though I haven't checked and verified it's authenticity.
I am simply raising the reason as to why Dimon may have said those things, aside the Federal Reserve (or Dimon) so concerned perhaps, that Dimon felt compelled to make this announcement; and then again how people like that, in positions, such as large analysts, and large holders of a coin, can create a wave through the marketplace only for their advantage behind the scenes to which has been the case in point for decades, to say the least. Thank you for your interest and understanding, and moreover, your vote of confidence.
Great post and very informative. @kushpay Have learnt a lot from it.
Marcel writes in reply:
Good post on the whole, but a few observations
Reply to Marcel:
Thank you Marcel for pointing out 1 (being bitcoin has been hacked). Bitcoin has been able to be removed from a wallet, therefore the wallet, having be the vessel and the cargo, being bitcoin, has therefore been compromised, thus the meaning is that as the whole..but i thank you for the clarity..if one can move the bitcoin from a wallet, that ha is hacked, regardless, hijacked.., however may be the proper word, but again I'd stress by what level of authority could you prove the authenticity of it not being compromised? (You'd have to be greater than a condenses would you not? ) agreed with a lil clarification about where I'm going with this. Additionally thank you for pointing out the clarification for pairs but you're missing a point if when paired, the vessel and cargo..are now part of the very same and similar derivatives and financial products that make for dilution as a whole. So the point you make in your number is correct, and for perhaps much more of a trading audience...in this case the future interest and expectancy is in fact the problem, that which ultimately perpetuates a problem. Finally, for now, it is something must think about and that's all that it is..you can want to assist and say otherwise...after all this technology "lingo" is almost a redressing of the old, and some new terminology and lingo may just be that to which already existed in part or in full, digitally, which when bean counting, I was making a point to which in 2008 and an unbeknownst pseudonyms of the "inventor" may just be the shadow banking and/or it's coherts could be the lurking of a further methodology to regain confidence in a different fashion. You don't hear about that even nearly 10 years ago...the national and public debt being over 1.4 quadrillion dollars (in the states). Instead you may have only been aware of the roughly 16 trillion dollars, of course after the 8 trillion doubled during the northern rock run, and the libor break which provided for a Mark to the Market accounting (an effect which also may have been an advanced move and outside the scope of this response ), thus to which perhaps bitcoin was conveniently disruptively introduced. If you think that it was just an all of a sudden event, we both can agree bitcoin was years in advance of its launch. And we both applaud that. Thus the entirety of the writing of that article was just to address the questions of what is only still confidence with a NON-finate ability to be cross collateralized, insured, etc. That to which once divested questions the so called "scam" dimon makes. The parallel, in this reply, is that of the debt numbers, which was a mere example of what people know and what they don't, Along with the hidden...to which With the exchanged values being different across the board, and spreads moves further provide more dilution, of what could have been stored value Finally, the evidence is abundant about programmers, hackers, and possibilities..to which parallels with your number 4 response and the whole reason for the article.I thank you for your remarks and clarity.
Marcel replied:
Of course, any debate is always a healthy debate. The biggest, sole danger I see, though again unlikely, is that all governments or all the world decide to ban bitcoin, bitcoin wallets and exchanges altogether. This would indeed mean a total collapse of the currency at least in the mid term until a circumvention is found. Your theory cannot be proven nor disproven, so one would be wise to keep an open eye. However, I really do not see any possibility of a 'fake' bitcoin being the danger here. There are far too many checks and balances in place for it to be successful on any scale.
He Continues.:
As for the short selling, this is just like when people buy Gold. It is, I agree, a horrible travesty that companies are allowed to sell something they dont have and that there is not enough supply. Most people who think they own gold, in fact own nothing more than paper. For Bitcoin, I would not dream of recommending to anyone to buy into the coin without having the coin in a hardware wallet and backed up by a paper wallet. Likewise, I wouldnt own gold without having it physically present in my own safe.
My Reply:
That was the whole point of the article....it did not call it a fake..it merely brings about what may or may not be...and no one can prove one or another...and again a discussion topic. :)