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68

Unfortunately, given the public's limited of understanding of cryptography this is apparently an easy fraud to pull off. The key trick is that non-technical people are prone to believe things that just sound jargony enough and that technical people tend to think they know a lot more than they actually do-- and so they're easily sent off into the weeds. In ...


31

It's important to differentiate between a scam, where a person or entity stands to profit fraudulently from others, and a high-risk investing decision, where there is potential for a person to lose significant amounts of money without being defrauded by anyone. With that clarification, Bitcoin is clearly not a scam. Like any other currency, Bitcoin is ...


31

It's not completely clear what the situation is, but from what I gather it seems that you're the sender and the recipient is not acknowledging a payment you have sent. I assume that you have verified that the credited address 1Gouzjo9Jav1k4AmRoUJJMzidVfnMoSieS matches the one that you were supposed to pay to, and that the amount matches the invoiced amount. ...


26

Bitcoin strongly enforces two concepts - high anonymity and no chargebacks. Because of high anonymity, it is nearly impossible to be 100% certain who you are sending Bitcoins to. In the end, the Bitcoin address is just an arbitrary string of characters. Because of no chargebacks, once you send someone Bitcoins, they are irreversibly theirs (assuming no ...


25

The Scenario is confused, because it assumes that there is only one side to a trade. The scenario assumes that the money goes "into the Bitcoin economy" when people buy bitcoins. This is confusing, because it sounds as if there were only one side to the trade. You will find that the scenario doesn’t imply Bitcoin to be a Ponzi scheme, once you take a closer ...


22

It is definitely a scam. They typically pay people who paid in before with the payments of the people who pay in later. This is unsustainable and it will collapse leaving those who paid in later without any money. Furthermore, most of them will simply take your money and leave. This is a scam and so is everything that promises absurd rewards. This includes ...


20

I'm sorry to be the bearer of bad news: It looks like your funds are gone and the security of your computer is compromised. A quick google suggests that is one of the electrum phishing destination addresses. You can find more information on the attacks against electrum here: http://electrum-malware.surge.sh/


18

It's because bitcoin transactions are final, and exchange margins are low. Businesses selling something for download can afford to be hit by fraud without incurring any real loss (other than potentially an opportunity cost, but even that is likely to be minimal as fraudsters would be unlikely to pay even if they couldn't defraud). ie margins are high. ...


18

As David Schwartz said in 367; Dan Kaminsky has spent some time auditing the Bitcoin core . He is a respected security professional, and his opinion on these matters is highly regarded. He came to the conclusion that there weren't any concerning security vulnerabilities, but scalability is something that will have to be tackled as the project grows. ...


16

Since the vast majority of money launderers seem to prefer cash, I'd say the answer is no. At least, not yet. The way money laundering works is that you hide illegitimate transactions in a sea of legitimate transactions. There are a vast sea of legitimate cash transactions which makes money laundering in cash work well. Until there are some high-volume ...


16

No, you were not defrauded because you did not lose anything real. You did not lose 10 BTC. You did not lose $1,556.76. You lost potential, yet unrealized gain as a result of the delay in processing your order. You may have not had access to either amount for a period of time because of the flag thrown on your transaction. AFAIK, Coinbase does not publish ...


14

Here's a list of the most notable scams, thefts, and hacks: https://bitcointalk.org/index.php?topic=83794


14

Adam Cohen later retracted his allegation of it being a scam, which is mentioned at the end of his answer: "Update 6/2: For those of you also on Hacker News, I made a couple of clarifying points, which included an apology for glibly using the word scam. Read more here. http://news.ycombinator.com/item?id=2612237" Open source software can obviously not be ...


12

You can create fake transactions and blocks including fake transactions all day long if you want. Your problem would be getting other people to accept those blocks and they won't because they can very easily see that it contains fake (better word: invalid) transaction(s) and simply disregard those blocks completely. The first invalid block wil never be ...


11

There is no danger in providing your Bitcoin address. For sites that use inputs.io, certainly you have to provide some way for them to know which account to credit. The security of that account depends on the strength of your password, and how much you trust inputs.io. A more fundamental problem with these faucets is that they are a complete waste of time. ...


10

Here all famous scammers/sites: List of Known Bitcoin Scams: Beware of Fraudsters! Bitcoin Scammers list


10

Your question is equivalent to asking, "Does SHA256d have a trapdoor?" SHA256d is a well studied algorithm. It's believed not to have a trapdoor. If the creator of bitcoin has a way to break SHA256d, stealing all our bitcoins would be the least of our worries.


10

A bitcoin address is not like a credit card number. You can safely give your bitcoin address out publicly. What the email is asking for is something you should never give out publicly: the mnemonic that you use (e.g. if you use Electrum, they have a 12-word mnemonic code), from which you can calculate your private keys. With this, they can easily steal all ...


10

This is definitely a concern, and is the reason why Bitcoin users are encouraged to wait for several confirmations before accepting a transaction and delivering goods. It's not quite as easy as you suggest, though. When you made your transaction at the cafe, it was, as you say, broadcast across the network. Barring connectivity problems, every node on the ...


10

Bitcoins are no different from any other commodity in this regard. We say that the price of a car is $45,000, but that doesn't guarantee that you can sell one for $45,000 unless you can find someone willing to buy one for $45,000. When we say some particular number is the price, we mean that's basically the number that buyers and sellers both agree that it ...


8

Bitcoins are liquid. Everybody wants bitcoins, and as many as they can get - if not for some immediate use, then to sell them for other currencies which are of immediate use. Even someone who doesn't need or believe in Bitcoin can still steal them. Thus a Bitcoin CC trader will attract all the fraudsters in the world. A site like RPGNow will attract only ...


7

If you are attempting a 0-confirm double spend then which transactions (if any) are included in the next block is irrelevant. Your goal is to simply complete both transaction prior to either merchant getting notification of the other one. The "problem" is that the network is fairly quick at passing transactions from one node to the next. Unless you have ...


7

Faucets like that really exist and work, however, there probably are also some fakes. Nothing can be done with a Bitcoin address except to use it as a recipient address and/or see the transaction and balance history of the address. E-mail addresses are not required to send bitcoins. Unless you can discern another legit reason for them needing the email ...


7

Basically, yes. Coinbase is notorious for this type of shady practice; hit me just last week. At least you got a reply, their customer service ignored my requests for updates. A few quick searches will find you quite a few repeats of this same old story. It's best to not think of Coinbase as an exchange at all; think of them as just a store that sells ...


7

A Ponzi scheme is characterised as follows (this is according to Wikipedia, rather than for example the US Department of Justice, which would focus more on the criminal culpability in its definition): A Ponzi scheme is a fraudulent investment operation where the operator, an individual or organization, pays returns to its investors from new capital ...


7

In general bitcoin means: "if you don't own the keys, you don't own the coins" (for example web wallets or exchanges) and "if you hand over the keys (have them stolen) or sign a transaction to the wrong destination (buy a cheap iPhone from Nigeria) then you just learned a lesson the hard way". Having said that, Bitcoin does offer some unique protection ...


7

Bitcoin is sound technology, but somewhat hard to understand encompassingly. Due to the amount of money that is involved, numerous ponzi-schemes and other scams have sprung up in its vicinity. From what I've read, and the recount of another Bitcoin meetup member that went to a OneCoin presentation: OneCoin appears to be a pyramid scheme aimed at people that ...


7

Onecoin is not only a scam it is a criminal organization. The have stolen a lot of money from their customers. http://rettit.no/mrbitcoin/index.php?title=OneCoinSCAM


7

Reductio ad absurdum: Let's say it works. Invest the equivalent of 1$ on Day 0. Day 1: you get 2$, let's reinvest them! Day 2: you get 4$, let's go on! ... Day 30: you get 1073741824$, i.e. in one month you are billionaire. Day 37: you are the richest man in the world Then why doesn't the creator of this "Bitcoin Doubler" do it for himself? If it works, he ...


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