Bitcoin is a decentralized digital or virtual currency that usually no one owns and the Government has no control over it, so they cannot influence the circulation and operation of a Bitcoin. This usually uses peer – to – peer cryptographic proofs and networking just to operate this system. Sometimes, this system influences, creates, and controls scams and frauds freely by recording transactions in a public history records, block – chains, and once validated with proof of work systems becomes valid and binding. However, can this system control the Bitcoin fraud and swindle? Hard to say, because most rip-offs and frauds happened in a virtual and online community, so this system is not a 100% safe and secure.
In other words, Bitcoin is not just a virtual currency, but it is a
massive experiment of group task. This is also a hint of the financial crisis system and ultimately called a fraud. Building trust, on an online network, is a daunting task because they are many con – artist scattered everywhere especially in online networks. In addition, a Bitcoin is the libertarian’s dream, so meaning everybody has the change to access and alter your Bitcoin transaction history. Nobody can influence this system’s transactions and operations outside their networks away from the government are prying eyes.
Why is this system a fraud?
Bitcoin is a peer – to – peer currency created for the convenience of online transactions and operations. This has a bit – torrent network that everybody can see, access, and alter, even without the influence of the government. Bear in mind that this system is a nightmare for the government because they cannot do anything to influence this system’s transactions and operations. Just like any other systems, a Bitcoin is an encoded data that uses cryptography techniques to decode these data. For this reason, Bitcoin fraud appears.
Remember that each time that a Bitcoin changes its hands, also its transactions and operations history that encoded in a string of characters change. Anyone with advance or sufficient computer knowledge can decode this digest or hash value easily, so anyone who accesses this system has the chance to alter everything. Another thing, when an exchange of Bitcoin happens, a digest would be transmitting all over the network so everybody will know how much you virtually earn on your Bitcoin. By this, you should be on guard on your history transaction. Even this in the form of encoded strings of characters, it would be easy so do not be shocked if your Bitcoin history transactions are questionable. When this happened, you cannot pursue who is responsible, but you can warn others the dangers they will be facing.
A digital or virtual currency created without policies by any central authorities. This currency is almost immune to money laundering rules that are difficult to track seems to be incredible news. However, this is not the case because even this is new, many people losses many things especially their virtual or digital currencies. Sad to say, but you cannot do anything except to watch your virtual or digital currency stolen from you. As a result, Bitcoin fraud is the disaster just waiting to happen!