Although Bitcoin is praised for its high-quality processes that lead a lot of people to wise outcomes and success, it has its own dark side. This side is less exposed to media and the people as it can possibly ruin whatever Bitcoin has worked for years, exerting lots of effort, expenses, and time. However, discussing this side will be a way for a better and deeper understanding to what Bitcoin really is and its main purpose and future. Given that, we have gathered the information already for you about the dark side of Bitcoin. So, let’s start!
Bitcoin provides a lot of advantages, but some government gave warnings that are not still founded entirely. The main reason behind that is that there are elements of criminality that seek to take advantage of the media hype and excitement around Bitcoin. One example scenario is when the cybercriminals launched Ponzi schemes that gave promises on investments through astronomical returns. After the money of investors have disappeared, this is the time when they realized that they were scammed. Therefore, the governments raised awareness advising the public to invest cautiously and uphold skepticism in life. If you want more information regarding this, you can go through the www.bitcoineras.com to better understand it.
Here are some of the ways wherein cryptocurrency is misused.
On the 12th of May, 2017, a big ransom outbreak, also called the WannaCry attack, took place around the world. This was the malware that took control of the computers of victims and demanded them for money as a return for relinquishment. While the used ransom was not new, the attack’s one distinguishing factor was demanding money in Bitcoin form. With that, the incident brought a lot of misinterpretation and bad publicity to Bitcoin.
Due to the ease of Bitcoin transfer and high-quality anonymity, terrorist groups tried their best to do fundraising on social media platforms through Bitcoin addresses. While it did not become successful back then, there is still no assurance that these terrorists will succeed on their next try. However, nothing gives it worth to anonymity as a restriction to the network of blockchain. Once it is converted to other currency, the transactions and identity of a person can now be easily tracked through the IP address. Another thing, because of the public blockchain done in the transaction, tracking the fund movements became easier.
Lots of online scams are now leading people who own a Bitcoin account to be a victim of stealing. The most typical online banking still has a lot of protection, such as two-factor authentication, password, OTP, and a lot more. However, in the case of Bitcoin, there must be one to hold the private key and empty someone’s wallet. Keyloggers are being active in stealing people’s computers with the help of Fraudsters. On the other hand, there is also the Trojan, which is known for professional horseback riding and attack. It then puts that protecting the Bitcoin wallet is a must thing to do.
Another thing, online sellers are also one of the most loyal users of Bitcoin. Here, even though they are already tired of online selling, the Bitcoin can let them advertise a product and gain profit, as well as a huge discount. The problem here is when the buyer already paid for the product and made them let it be shipped. After being delivered, the quality of the product can be way different than what it is actually.
There are also scams that use ICO. Since the market of cryptocurrency is unregulated, a lot of people are deliberating to launch a fraudulent blockchain project. The promises of innovation suddenly were replaced by project development yet declared as unfinished and a huge loss.
Now, these are only the dark secrets of Bitcoin that anyone needs to know. For more information, hurry up now and do not let them wait.
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