Bitcoin has witnessed good and bad times in 2022 after the previous year ended in a style. This has raised questions from some quarters about scams.
There are reasons why Bitcoin has not been widely accepted despite its golden moments in the crypto industry. As the number one crypto asset, many other digital assets have been created using its model. Digital currencies have been said to own the future but there are doubts if cryptocurrency stays forever.
In this post, we’ll see why Bitcoin is considered a scam and how far it has gone in 2022.
What is Bitcoin?
Bitcoin is a decentralized digital currency, without a central bank or single administrator. It can be sent from user to user on the p2p bitcoin network without the need for intermediaries.
The cryptocurrency was invented in 2008 by an unknown person or group of people using the name Satoshi Nakamoto. The currency began use in 2009 when its implementation was released as open-source software.
As of today, Bitcoin is the largest and most popular cryptocurrency. Several other coins have been created using its model and are known as altcoins i.e. alternative currency.
BTC is referred to as the ‘future’ of currency. Many are eager to abandon traditional forms of currency in favor of this digital currency.
Bitcoin’s Worth In Crypto Market Today
Bitcoin remains the number one ranked cryptocurrency today. According to CoinMarketCap, BTC has a live price of $47,308.22 USD with a 24-hour trading volume of $28,241,290,481 USD.
It has a live market cap of $898,773,914,484 USD. It has a circulating supply of 18,998,262 BTC coins and a max. supply of 21,000,000 BTC coins.
Bitcoin is available in most exchanges worldwide as well as peer-to-peer trading platforms.
Why is Bitcoin Considered a Scam?
Cryptocurrency is not totally accepted by many nations of the world. China, in 2021, passed laws banning cryptocurrencies. Some Central Banks including Nigeria’s CBN banned activities involving crypto in banks and other financial institutions.
The Satoshi Nakamoto’s created currency has some reasons why it is doubted as a ‘future currency’. They are discussed below-
1. It has no intrinsic value
Unlike physical money, Bitcoin and other crypto assets cannot be seen, felt or touched. Bitcoins are digital money that can be sent from one person to another.
The lack of intrinsic value has made some people to accept it as a form of currency. Some people see it as a ‘time bomb‘ where those who have invested in it will lose their money in a matter of time.
Although the crypto market is worth trillion of dollars today, there have been claims that it will soon crash.
2. No one knows where it came from
Many have labelled Bitcoin a scam because the creator and where it was created is unknown. Bitcoins pseudonym founder goes by the name Satoshi Nakamoto and doesn’t have a face to the name.
Critics have stated that an awesome project like this should have a known creator. Just like the currencies cannot be seen, felt and touched, the founder takes the same route.
This has made some to question its legitimacy as a currency to be used for payment of goods and services.
3. It is easy to create
The fact that digital currencies are easy to create has made it to be labelled as scam. Many projects have been launched with hypes around it but has gone into thin air.
As of today, there are over 17, 000 coins in existence. Out of this, many has gone down the drain. Cryptocurrencies are run on blockchain which is a distributed database that is shared among the nodes of a computer network.
Is Bitcoin a Scam?
No, Bitcoin is not a scam. It is a peer-to-peer online currency that have several real uses cases. The fact that it is decentralized makes it a better option than fiat currency.
Although it is not yet accepted worldwide, its adoption is increasing by the day. El Salvador, in 2021, became the first nation in the world to make BTC a legal tender. It has been accepted by many top companies in the world as payment for goods and services among other uses.
Other assets created after Bitcoin like Dogecoin is accepted by Elon Musk’s Tesla among other companies.
Cryptocurrencies are not without volatility except Stablecoins that are pegged to the US dollars. Its volatility has made it a risky currency to hold.
There are no doubt Bitcoin scams. Systems like “Bitcoin Profit” are built to deceive people. They lead you towards believing that they’ll guarantee you to become rich but in reality they’re just set out to trick you into depositing with an unlicensed binary options broker.
Is Bitcoin a Scam in 2022?
For many investors, early this year was not a good time to be holding crypto, and particularly bitcoin. Bitcoin’s price nearly halved, to $35,000 on Jan. 22 from $69,000 on Nov. 10.
The declines affirmed what investors have seen from the outset: Bitcoin and cryptocurrencies generally are volatile and risky assets. When you invest in them, you should expect jolts in both directions.
For many that have called Bitcoin a scam for its dip in early 2022, the recent surge has calmed the storm. In just 10 days the crypto market has recovered almost all the losses it suffered in more than two months.
BTC has increased 20% since mid-March, which helped it wipe out all the 2022 losses and left it up about 2% for the year.
Why the Fuss About Bitcoin?
Discussed below are some of the reasons people want to trade i.e. buy or sell Bitcoin.
1. Bitcoin came to be after the global financial crisis of 2007/8. It was proffered as a solution to the reckless behavior of large financial institutions & the inability of government to regulate them.
2. Many people want to trade Bitcoin as it is seen as a way of making quick money. The unstable price of crypto assets have made many to study its market in order to make a fortune.
3. Many crypto assets are decentralized. This means that no company, government or organization has complete control over the currency. Some people really care about the decentralization which helps to send/receive money without the notice of banks & other financial institutions.
Bitcoin and other cryptocurrencies are no doubt risky assets for investment because of it’s volatility. That doesn’t make it a scam. Nevertheless, if you must invest in crypto assets, you must put what you can afford to lose as returns is not guaranteed.
Also Read– Is Bitcoin App Safe?