Bitcoin is the leading cryptocurrency in the world. The Blockchain currency has been in existence since 2008 and has moved up the ladders of strength to become one of the most substantial financial assets available in the world today.
The whole world was in financial trouble before the creation of Bitcoin. The period before the invention of the Bitcoin Cryptocurrency asset is tagged as the global economic meltdown period. The events that led to the global economic meltdown lasted many months. At that time, people saved money only in banks (people still save in banks though). Banks were the safest place to keep valuables away from burglary and robbery at that time, so many people saved their money in banks. The factor that’s not so popular about saving in banks is the fact that banks use the funds of their customers to engage in high yielding investments, thereby generating funds to run their activities as well.
Some banks give loans to prospectively profitable businesses who, on return, pay interests on the initially loaned credit. Just before the creation of Bitcoin, banks in America gave out a lot of loans, the businesses that took the loans could not pay back up, so people could not access their money in the bank. The American government tried to help out by printing more money. The trend went on in America until the economy of America was in virtual shambles at that time. Because many other nations rest upon the shoulders of America for their economic cycle, the trend in America affected the whole world.
This trend led to the creation of the Bitcoin as a peer-to-peer form of investment, thereby eradicating the role of the third party to investment executions. Bitcoin was almost entirely useless in the first year of its operation, but the premier cryptocurrency asset has evolved to become the leading form of currency globally.
Bitcoin has evolved from a network of just a few individuals to one that serves an audience over forty-four million globally. The growth of this crypto asset has not gone unnoticed by scammers and con artists who try to take advantage of people into the loss of their Bitcoins. Many crypto scams have come and gone over the past few years, many still slowly eat into people’s investments even now, and some scammers deceive people into the total loss of their Bitcoin investments. The unfortunate thing about Bitcoin is that it is a pseudonymous asset (an asset that allows for anonymous transactions). It is hard to trace the source or the end of crypto scams. Bitcoin serves a global audience, and any government policies hardly regulate it. It falls on the investor to find a way to safeguard his/her crypto investments.
BITCOIN SCAMS IN SOUTH AFRICA
Africa is one of the third world continents of the world, and it is home to some of the world’s poorest nations. Bitcoin investments have proven to be one of the ways South African residents and indigenes bailed themselves out of the poverty that plagues the African Nation.
Because of the low educational and enlightenment background of many South African residents, scammers have taken advantage of many Bitcoin investors in the South African nation.
It is to be noted that while the methods Bitcoin scammers and con artists use are hardly noticeable, there’s a general tone of crypto scams. Scam Bitcoin investments usually have a deep tone of urgency; they sound like the investor will lose a lifetime opportunity if such doesn’t place funds in the investment quickly. Sometimes, the scammer uses a persuasive means to lure an unconvinced victim into such investments. Unsuspecting victims sometimes invite friends and family members to invest in such opportunities when they still can. The trend continues like that till one day, the Bitcoin investments platform closes down with no trace at all of its administrators.
Bitcoin Scams also promise unrealistic returns in a short while. While it is true that Bitcoin investments hold substantial profit opportunities for its investors, it barely happens in a short while. Many who invest in this blockchain currency in South Africa do so because they want a way to insure their financial future. Many do not make any form of research into the history of Bitcoin, so they take whatever the con artists give to them as facts. Bitcoin scammers in the south African shores use the ignorance of the people against them. When the returns promised on Bitcoin investments sound too good to be true, it’s most likely because it is, one should beware, there may be a foul play somewhere around.
SOME RECENT EVENTUALITIES OF BITCOIN SCAMS IN SOUTH AFRICA
Unfortunately, there have been many cases of Crypto scams over the past few years in South Africa. Some of the scammers were apprehended, some made away with no trace as to where they might be. Whatever the case, the funds of the investors never made way back to them.
Below are some of the significant scam activities that have plagued the South African shores; it would be wise to use these experiences to your advantage in your own trading experience.
THE BITCOIN WALLET SCAM
This scam is possibly the most massive Bitcoin scam the South African shores have ever witnessed. This scam platform has deprived many South Africans of their hard-earned money. The Bitcoin wallet operated from a physical office in a little remote town in South Africa: Ladysmith in Kwa-Zulu Natal. The Bitcoin wallet platform started around a time when the value of Bitcoin rose impressively. The Bitcoin wallet platform promised a hundred percent return on investments in three weeks. Bitcoin wallet initially allowed for a minimum of $6.74 investments, but as many more people joined the platform, the minimum investment rose as high as $337. Bitcoin Wallet said it invests the money of its clients in buying and selling Bitcoin and generated profits for them.
With the promise of a hundred percent guaranteedreturn on investment in less than a month, in an environment like that of Ladysmith, many rushed into this scam investment. In a matter of just a few weeks, the Bitcoin wallet’s fame spread all over South Africa. Ladysmith is a town with only about sixty thousand people; the Bitcoin wallet generated a daily investment of about one hundred and thirty-five thousand dollars from the villagers of Ladysmith. At some point, people started queuing as early as 3am to be able to place their investments on this scam Bitcoin platform.
In July 2019, the C.E.O. of Bitcoin Wallet suddenly disappeared into thin air with no clue as to his location. All the investments placed on his Bitcoin Wallet platform went with him, leaving investors stranded and unable to access their funds.
The strategy used by this scam platform has been engaged in several other parts of Africa, and these scammers have made away with a lot of money (some of which people borrowed based on the promise of a quick and high yielding return). Bitcoin is a very profitable cryptocurrency investment, but just like its price rises, it also falls, and there has never been a time in the history of Bitcoin where its price doubled in a timeframe of three weeks.
THE SOUTH AFRICAN BITCOIN LOTTERY SCAM
As the world evolves, so do the policies that guide human living and security, even with funds. Early in 2019, South African Bitcoin scammers took another approach to the Bitcoin scam trend in the nation. The strategy of the bitcoin lottery scam was to tell people to make Bitcoin donations to qualify for a lottery that could win them thousands of dollars, as expected of the unenlightened populace of South Africa; some put their money into it. The scammers of this category hacked a high profile South African organization’s social media account and used it to push the credibility of the investment. Thankfully enough, the situation was salvaged on time as the organization regained control of its account and disconnected itself from the platform.
This crypto scam did not pull as much weight as the Bitcoin Wallet scam, but a Bitcoin investor in South Africa must look out for crypto scams like this one.
Some have committed themselves to deprive people of their hard-earned investment returns, they device new schemes and platforms with which they rob people of their money. Unfortunately for Bitcoin investors, there’s not much the government can do to help because Bitcoin is an unregulated currency. Still, it remains the duty of the investor to develop measures to safeguard against scammers and con artists. As a Bitcoin investor in South Africa, be sure to go the extra mile in confirming the details of any investment platform before committing funds to it. Please don’t share your Bitcoin wallet address unnecessarily, and when you do need to share, be sure it is to a trusted source.
Investing in bitcoin is a fantastic form of asset investment; one has to find a way around the many scams around it. You can Learn More About Bitcoin here Xtrgatescam