Crypto Currencies are the new Internet currencies. They aren’t created by governments or banks but by new organisations seeking to develop (or benefit from) new possibilities in currency transactions and investments.
There are lots of these new currencies but the biggest and most famous by far is Bitcoin.
You can see that the value of Bitcoin started at near zero and reached over $2,000 in 2017.
The first ever Bitcoin transaction was the purchase of 2 pizzas for 10,000 Bitcoins.
The price has always been extremely volatile and having reached an all-time high of over $20,000 it crashed to less than $4,000 by the end of 2018.
Scammers usually offer one of the following:-
- A guaranteed way to make money betting on the Bitcoin price
- Automated “scientific” methods for gambling on Bitcoins e.g. using artificial intelligence
- A way to invest in Bitcoin that guarantees you will make lots of money
- Bitcoin vending machines
- Fake Bitcoin accounts opened in your name
These deals are also offered for other crypto currencies but most people have only heard of Bitcoin so the scammers focus on that one. Plus, there are lots of stories of people who invested a little in Bitcoins and are now millionaires. Some of these are true but as with any form of gambling or investing – past results do not tell you what will happen in the future.
Anyone who invested in Bitcoin in early January 2018 had lost 85% of their money by that Christmas.
The scammers don’t care of course as they only care about themselves and how much money they can steal from people.
Most of the scams are entirely fake – there is no Bitcoin investment or anything else of value and the ones that do actually lead to investment in Bitcoins are usually so highly leveraged as to make it impossible for anyone to benefit except for the scammers.
If you want to invest or deal in Bitcoins or any other cyber currency – take professional advice and be aware that you could easily lose everything.
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