What Is Bitcoin?

It is impossible to go anywhere on the web without seeing some mention of bitcoin. Although the buzz about bitcoin seems to be new, this digital currency has actually been around since 2008. Its origins are clouded in mystery since no one is sure exactly who developed the technology. Bitcoin has led to the creation of thousands of cryptocurrencies that can be mined, saved, spent, and traded online. 

Many people love the freedom of bitcoin and feel that it is an advantage that cryptocurrencies do not have to comply with government regulations. However, this means that a bitcoin scam transaction or a bitcoin dispute can be harder to deal with than an unauthorized credit card charge or bank wire fraud. When dealing with bitcoin fraud or a bitcoin dispute, it is important to consult with a fund recovery service with a long track record of success in crypto recovery.

MyChargeBack experts provide guidance to consumers who are trying to recover their funds from broker disputes, bitcoin fraud, or other types of scams. We consult with clients, do research on brokers, and create intelligence reports that will assist in fund recovery. In addition, we help clients retrieve their funds through chargebacks, wire recall, and crypto recovery. 

Bitcoin Beginnings

Bitcoin began as a way to create a digital alternative to government-produced and regulated fiat currencies. The idea behind bitcoin was mapped out in a white paper that was published by someone who called themselves Satoshi Nakamoto. That, however, does not seem to be the real name of the developer of bitcoin technology. 

The new digital currency promised lower fees, more convenience, and a lack of interference from the government. New users found that digital currencies could be used to purchase goods and send money in a matter of minutes. 

It is possible to track bitcoin transactions on the blockchain, but all of the transactions are anonymous. Once they are made, they can’t be reversed, which poses a special challenge for fund recovery and bitcoin disputes. 

The anonymity provided by cryptocurrencies is a plus and a minus. Some feel it enhances security and keeps transactions safe from interference by hackers. Others note that bitcoin scam transactions are common because of the anonymity of the blockchain. Many fraudulent parties feel that cryptocurrency is a safe haven to perpetrate all kinds of fraud in bitcoin. In fact, many bitcoin cases have revealed that scammers use cryptocurrency to protect their identities. 

Why Is Bitcoin Suddenly So Popular? 

Although bitcoin was developed in 2008, it seemed to have peaked in popularity in 2017. The rising number of bitcoin fraud cases led to tighter regulations in the U.S. and China shutting down three major cryptocurrency exchanges. 

During the COVID-19 pandemic, interest in bitcoin revived as the association between bitcoin and fraud was forgotten for the time being, and people who were out of work and at home in front of the computer were searching for ways to make money. 

Bitcoin trading and bitcoin mining became popular in 2020 as a way to cope with the pandemic and to find financial opportunities. However, bitcoin fraud has also increased in the past couple of years and now there are major warnings cautioning consumers to avoid social media bitcoin deals and to be on the lookout for bitcoin unconfirmed transactions. 

Advantages of Bitcoin and Disadvantages of Bitcoin

There are many advantages of bitcoin and other cryptocurrencies. Many users find it is more convenient to earn money, spend it and trade it all in the same currency and on a digital platform. Some find that the bitcoin transaction fee is cheaper than those on credit cards or through bank transactions. Others see bitcoin as a rising asset and feel they can make money trading it. 

However, there are many disadvantages to bitcoin. While some see government regulations as a negative, they are useful in preventing financial fraud. Since the government has so little authority over cryptocurrencies, there are many bitcoin fraud cases. Fund recovery on the blockchain can be difficult because bitcoin scam transactions do not have names connected to them. 

Trading bitcoin can be precarious because it is a highly volatile asset. Between October 2020 and April 2021, bitcoin jumped from $10,000 to nearly $60,000, only to fall suddenly on comments made by Tesla CEO Elon Musk. There are few ways to predict the direction of cryptocurrencies and they can rise and fall on a headline, a tweet, or an unexpected development. 

Finally, the connection between bitcoin and fraud can’t be ignored. Along with the steady rise in bitcoin’s price,bitcoin fraud cases increased 1,000% between October 2020 and June 2021. It is unlikely that cryptocurrencies will all but disappear as they did after 2017, so it is important for anyone who wants to hold, trade or purchase items with bitcoin to do research and take precautions to avoid bitcoin fraud. 

About Bitcoin Scams

There are many types of bitcoin fraud, including:

  • Fake bitcoin brokers
  • Phony bitcoin wallets
  • Bitcoin phishing scams
  • False bitcoin mining prospects
  • Defective bitcoin products and services

The sheer number of bitcoin fraud cases can cause consumers to stay away. However, it doesn’t seem that the risk of a scam is driving people away from bitcoin as it did after 2017. Therefore, it is more important to take precautions against bitcoin scams to stay safe with cryptocurrencies. The following steps are good practices for using bitcoin safely: 

  • Work only with a regulated broker or a licensed platform
  • Check the identity and qualifications of the people who develop bitcoin products
  • Be on the lookout for bitcoin unconfirmed transactions
  • Do not give your keys or codes to anyone
  • Avoid quick trade deals on social media
  • Read reliable reviews for bitcoin apps and products 

Even after taking these precautions, you still may lose money to a bitcoin fraud. If this happens, look for a fund recovery agency that can track bitcoin transactions and can handle a bitcoin dispute. You need experts with a track record of dealing successfully with bitcoin fraud cases and who can help you recover your money from the blockchain. 

Consult with MyChargeBack experts and provide information that can help us draw up an intelligence report and speak to regulators and authorities. We can assist investigations and negotiate and help you with fund recovery. 

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