In the summer of 2017 it happened. The bitcoin boom or more specifically the crypto currency boom. This is when the entire world got sucked into the Crypto craze. And at the same time this is when the Cryptocurrency scams saw a new opportunity to use this craze and bring people into their deceptive web.
Not only did this give a new model for scammers to build on but it also gave created a level of knowledge and comfort to the concept of paying in bitcoin, Etherium, Ripple etc.
What is Cryptocurrency?
Cryptocurrency is a digital asset that was created to be used as a way of exchange that uses a high-tech coding called Cryptography to keep the currency secure and protected in order to verify the asset being transferred. The initial concept of this type of system was created with the goal of decentralizing the control of countries and banks. Usually this technology is built on a self sustaining program called blockchain.
The first Cryptocurrency that was created is called Bitcoin and still remains the most valuable and most traded.
Is paying in Bitcoin safe?
There are various ways of paying for services. Cash, credit card, debit card, bank transfer, Paypal and Crypto currency. With most electronic payments such as paypal or a Visa/Mastercard there is some sort of payment protection. It should be noted that when someone pays with Paypal and they send it via “Sending to a friend” option they lose their protection entirely. You should always make payments to merchants as a “Paying for an item or service.”
This is where Bitcoin or any other alt-coins differ from other electronic payments. This is where we must explain what happens when a person makes a payment via Cryptocurrency. Let’s use our good friend Bitcoin as an example. All over the world there is a network of millions of bitcoin “Minors” who’s computers are used to sustain the system, as a reword for sustaining the system they are able to “Mine” bitcoins. Which essentially mean they get bitcoins given to them by the algorithms for sustaining the system. This infrastructure facilitates the transactions… Its all quite complicated but in the end the money is transferred in a way that is instant, irreversible and anonymous. If you would like to really crack your head on the technological mambo jumbo then we would recommend reading this article.
The gist of the matter is that such payments are ANONYMOUS and IRREVERSIBLE!!! Which means that it would be better to send cash in the post. I don’t know anyone that would think of doing such a thing, save from your grandmother sending a £5 note to her grandson for is birthday.
So should I pay for things with Bitcoin?
So the answer is NOOOOOOOOOOO! It is not safe to pay in bitcoin. I would go as far as saying that you should never pay for anything in bitcoin.
If I was a financial adviser, which I am not, I would tell all of my clients to run away from anyone or anything that even mentions bitcoin. The only use that bitcoin has in our time is for scams and illegal activity.
Could Cryptocurrency ever take the place of our money?
Unfortunately Miss Cleo wasn’t available and I wasn’t happy with the feedback from the other seers, fortune tellers or my magic 8-ball answer. So I don’t know, nobody really.
Can you check out a broker for me?
If you are insistent that you want to go do then almost guaranteed path of getting scammed then I would minimally get the broker checked out. Do it here for free.