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Bitcoin Scams: Boon or Bane?

The introduction of Cryptocurrency made a huge roar across the world. Bitcoin had everyone’s attention. The world waited for Bitcoin to reach its true potential. The more people showed interest in Bitcoins, the higher the value increased. This worked as both an advantage and a setback. It not only turned heads of major institutional investors who then started investing in Bitcoins, it also grabbed the attention of criminals. Theft is a common crime. Bitcoin is not devoid of this.

Cryptocurrency scams have made it to the news several times throughout the past decade. There are various ways in which Cryptocurrencies have been stolen from various wallets, across the globe.

Major Ways of Scamming

Stealing Bitcoins is not as simple as stealing someone’s purse. One cannot just get hold of it, and run away. The target is reached in many creative ways.

  • Exchange Hacks: The most primitive way of Cryptocurrency theft was to detect transactions taking place, and hacking into the system. The hacker would then direct the course of the transaction into another wallet. This type of theft made Bitcoin a very unsafe bet. The Cryptocurrency market was almost losing its credibility due to such thefts.
  • Cryptocurrency Wallet Hacks: Even in recent years, several data of a France based trading company was leaked. Several email addresses were stolen from their database. These email addresses led to various Cryptocurrency wallets. Once the wallets were spotted, it was no big deal for the hacker to hack into the wallets. The funds in the wallets disappeared overnight.

This scam involved over 95,000 email addresses. The number of wallets that were affected by this scam is unfathomable. This incident had shaken up the entire Cryptocurrency market.

  • Social Media Scams: Recently, the twitter accounts of Bitcoin investors have been hacked. It includes famous personalities and influencers. Tweets were made from Twitter handles of Elon Musk, Bill Gates, and the likes of them. The tweets made a public announcement. If Cryptocurrencies were sent to a particular wallet, it would get doubled. This was showcased as a charitable act, and thousands of people fell for it.

Many transactions took place just within a fraction of a second. The tweet had spread like wildfire. It did not take too long for people to figure out the scam, but it was already too late for many. A scam worth a million dollars had taken place.

  • Scam through Psychological Manipulation: Many email addresses have received links which direct the users to share their banking details, private key, and wallet details. Sometimes, these mails are accompanied by blackmails, threatening the users to share the details or their browser history will be leaked. The users often felt compelled to give in to such threats.
  • Data Theft: Sometimes, it so happens that data which is extremely private to some personality is leaked over the internet. Google and Youtube were sued for leaking data that was not meant for the public.

In this way, someone’s private statement about Bitcoin affects the market, which leads to great instability in the value of the currency. The hacker asks the viewers to transfer funds to a certain wallet to avoid this from happening.

Is it a Boon or Bane?

It may sound strange, but the scams involving Bitcoins are the reason why their values increase. Scams make the market volatile, people start selling their Cryptocurrency, prices fall, others start buying, and the prices go up again.  Cryptocurrencies will entirely guide you in this process. Scams have proved to be a boon in this way.

Conclusion

Apart from that, it is only due to the scams that Blockchain technology has been optimized. The efficiency of the technology has only been reached when the loopholes have been presented to the developers in the form of scams. Even though scams need to be avoided at any cost, these are viewed as major advantages.

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