Bitcoin Review – What is a Bitcoin Scam?

My Bitcoin review. What is a Bitcoin Scam? Ever since the digitalization of businesses, everything from the operations to services to finance have gone through a significant paradigm shift. What once was a matter of papers had now been completely transformed into digital notes and emails.

With digitalization of businesses, cross country deals became more efficient, and the transaction of money became smoother as well, as it was done previously. Therefore, people had to deal with multiple currencies to sell their products to different countries.

With different currencies, it can be a little tricky to predict your total profit because of various currency rates. Hence a standard currency that would work anywhere proved to be an excellent idea for businesses. Several companies jumped into providing their form of digital currency which you could buy and use. However, the risk of scam and fraud has been always there.

In today’s review, we will look at one such digital currency service, Bitcoin, which is quite popular. However, a lot of people ask whether it is legitimate or not. We will try and answer that in this review.

What is Bitcoin?

Bitcoin is the modern form of currency. It provides a safer method to carry heavy transactions across borders. It’s a smart and innovative idea to help the users to deal with their money matters more efficiently and without any scares of theft.

It is an entirely different system as compared to the conventional cash flow. One great thing about this currency is that it is completely decentralized so that there is no third-party or middle man involved. You can directly submit and receive Bitcoins from your clients which also cuts down transaction cost.

As compared to credit cards and debit card payments, Bitcoin transactions are much faster and more secure which is why several businesses have turned to it.

Bitcoin – A Brief Introduction

Bitcoin was introduced in 2009 by Satoshi Nakamoto. This electronics cash flow system allows you to make a deal with your peers through electronic money. Simply put, you can buy Bitcoins and send them the equivalent amount to your clients. In this way, it becomes completely secure and risk-free.

More than just being an electronic cash system, Bitcoin offers to its users some amazing capabilities. Some of the things you can do with Bitcoin are:

Get rid of third party or clearance services for your international transactions.
Buy and sell things in Bitcoins when dealing with Bitcoin user companies.
There is a limit of 21 million bitcoins so no more Bitcoins can be printed. Hence the chances of inflation are very less.
You can make your transactions more efficient and get done with selling or purchasing within minutes
Use Bitcoin as a voting mechanism, crowd funding platform, trusts initiation, micro-tipper and for global identification of your money.

There are so many things you can do with Bitcoin. With a service so general in nature, Bitcoin is quite a popular service for businesses belonging to any type of industry. Whether you own or run a small business or a big enterprise, Bitcoin will surely be of use.

Bitcoin Pricing

There are multiple Bitcoin exchanges from where you can sell or purchase Bitcoins. The exchange fee is dependent upon the amount of money you are willing to convert into Bitcoins. The more money you convert, the lesser fee you will be charged.

Usually, the fee is charged as a percentage of your exchange amount. The highest fee is capped around 0.3% of the total amount.

Bitcoin Scams to Avoid!

Although the trusted Bitcoin exchanges offer great services, there are some other fraudulent services and exchanges as well. As people are now looking at Bitcoin as an opportunity to invest and high returns, the chances of scam are also getting higher. We will now take a look at some of the more talked about Bitcoin scams that you should definitely avoid.

Bitcoin Mining Investment

According to one of the magazine writers for Bitcoin, Mining is not the best option. The process actually validates and secures public ledgers. However, mining requires high tech equipment and fast computers, so it is not the best option for common users. Other than that, this process is for advance payments, but the products are not always delivered.

Bitcoin Exchange

Several Bitcoin exchanges offer credit card processing. Competitive rates are a major attraction which causes users to go further with the transactions. However, once the payment is received, the users don’t get any bitcoins or cash in return.

Phishing Scams

If you receive an anonymous email regarding Bitcoin awards, don’t open the given link to log into your wallet. If you log in, the scammers get control of your wallet, and they can transfer your Bitcoins to any location.

Bitcoin Wallet

The Bitcoin wallet software allows you to store your Bitcoins on your phone or desktop. This is a major attraction for users because it makes it easier to carry out bigger transactions. However, scammers can easily access your wallet and transfer the Bitcoins anywhere they like.

High Yield Investment Programs

Scammers often propose high-interest rates for their deposits. However, the earlier investors are paid from the deposits of newer investors. However, if there are no new investors, the payments can be made no more so your investments will not yield any return. This is purely Multi Level Marketing and as we all know, this is not the proper scheme to invest your money. I have yet to see a Bitcoin Investment offer that does not involve MLM.

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A Word on API and Integrations

As far as Bitcoin API and integrations are concerned, almost all the Bitcoin exchanges offer an open API for their customers. Hence, you can integrate your current systems with Bitcoin and also design your own money management tools using Bitcoin. Tools such as Trading on Margin and other functionalities allow you to use your Bitcoins as per your convenience.

What are Users Saying About Bitcoin

As far as user reviews about Bitcoin are concerned, there seems to be mixed emotions and experiences from the end users. For some, Bitcoin has done wonders, and they pledge to continue using the service. For others, it may not have been the best of the experience working with Bitcoin. Hence, it is quite obvious that Bitcoin has made its way to the general public.

There are several Bitcoin exchanges as well. Some of them are loved by the users while the others might be a scam. According to the head writer for Bitcoin Magazine, it is not the best idea to go for Bitcoin Mining at the moment. They suggested it is a better idea to buy Bitcoins through a trusted Bitcoin Exchange.

One of the analysts suggests that Bitcoin gains popularity in economically unstable regions. People when under risk of capital loss; prefer to convert their money to Bitcoins.

Since Bitcoin is not a centralized service, most of the reviewers have commented on the reputation of Bitcoin exchanges. For the convenience of our readers, we have listed the top and the most trusted Bitcoin exchanges:

Bitstamp
CEX-IO
itBit
Coinbase
Gemini
BTC

Since there are always black sheep in every market, there are several Bitcoin exchanges which are basically fraudulent and therefore, they should be avoided.

Bitcoin Pros

Bitcoin replaces hard cash, so you don’t have to worry about your wallets and credit cards.
It works well for international transactions and cuts down on time consumption as in the case of credit cards.
You can buy Bitcoins through simple bank transfers.
It’s a decentralized system, so the money isn’t held at one place.

Bitcoin Cons

Since Bitcoin is relatively young, major retailers still hesitate in accepting Bitcoins for payments.
The transactions cannot be reversed which is a sort of a drawback.

Is It Popular?

From the website reviewing platforms, we were able to get a more balanced and in-depth analysis about Bitcoin. According to these websites, Bitcoin.com seems like a legit payment service which has been rising in the ranks in the recent times. Here is a look at what these websites have made of Bitcoin.com.

According to Alexa, Bitcoin.com has an exceptional ranking in both, the United States and the world. It currently ranks among the top 10,000 websites in the world which indicate how popular a website it might be. Within the United States, it ranks among the top 7,000 websites which are not too bad a ranking. The motivating factor is that its ranking has been improving greatly in the recent times and it has jumped more than 3000 ranks in the last month. More than a fifth of the total visitors come from the U.S. followed by India with nearly 9% of the total visitors.

SimilarWeb has a different opinion regarding Bitcoin.com. Although the ranking isn’t too bad, it ranks among the top 22,000 websites in the world. Among the websites of the same category, Bitcoin ranks among the top 1300 websites. For an international service, this ranking is a bit low and can be further improved. During this month, Bitcoin has had more than 2.7 million visits with an average visit time of more than 2 minutes. However, the bounce rate is an alarming factor.

Conclusion

Bitcoin looks like an innovative solution to the money related problems for businesses. The solutions are quite attractive, and it can give the users a lot of relief especially when working with international clients. However, it is also important that people realize the potential risk of financial loss if their Bitcoins go into the wrong hands. Therefore, while using Bitcoins, users should be careful and avoid unnecessary Bitcoin offers as we discussed in earlier. Use the service but avoid the scams.

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