Bitcoin cash (BCH) is a digital currency. Unlike your local fiat currency like US dollars, BCH has no physical coin or bill — it’s all online. With BCH you are your banker - you don't need middlemen like banks to complete a transaction. You never have to travel to a bank and you have autonomy over your own asset and you can control how you spend your digital asset without the interference of an intermediary authority like a bank. Also, bitcoin cash allows for very low transaction fees especially for international payments and helps to eliminate banking fees - no account maintenance or minimum balance fees, no overdraft charges, and among many others.
11 key points to know about Bitcoin Cash
Here is a list of bitcoin cash key points:
Secure - Bitcoin cash transactions are encrypted within a Blockchain which is impossible to hack.Decentralized- With no one body in control, it can't be taken down, hacked, or manipulated.Unregulated - There's no guarantee of protection if a payment is made in errorTransparent - Both code and all BCH transactions.Low cost - You are charged as little as a penny for bitcoin cash transactions.Speed - allows for instant transactions.Limited supply - Capped at 21 million BitcoinsTruly global - Doesn't geographically exclude peoplePrivacy - Institutions don't hold your dataVirtual - Despite its name, Bitcoin cash has no physical coins.
Some of Bitcoin Cash Drawbacks
Everything Bitcoin cash is not rosy, it also has its drawbacks.
Volatility: Great amount of price volatility in the short term
It's a currency and an asset, which means that people are incentivized to HODL rather than spend Bitcoin with the hope that the price will surge someday.
No intrinsic value: the value of BCH is just what someone else is prepared to pay for it.
There is no buyer protection
It can be used for criminal transactions as it's untraceable.
Not widely accepted yet
Possibility of governments prohibiting merchants from accepting Bitcoin cash.
Cryptocurrency and Scam
The meteoric rise of Bitcoin (BTC) over the years has attracted a lot of attention to cryptocurrency. A lot of people may not understand the blockchain technology or the philosophy behind it, but they have read and heard stories of early adopters and savvy investors who turned a few thousand bucks into millions.
Unfortunately, anyone chasing that mouth-watering fortune achieved by these guys can also just as easily fall victim to opportunistic con artists and hackers who perpetrate cryptocurrency scams. One of the benefits of cryptocurrency is that it gives users autonomy and is unregulated by the government and very anonymous. But that also makes it ripe for fraud.
So is Bitcoin cash a scam?
NO. Bitcoin cash is NOT a scam, it is a legitimate new digital cash system already being used by millions of people around the globe.
That's not to say there aren't scams associated with Bitcoin cash. Many people let greed get the better of their judgment don't do their research and see buying Bitcoin cash (BCH) as a get-rich-quick scheme.
If you're interested in Bitcoin cash or any other coin, be aware of these potential scams.
As more people are onboarding into the cryptocurrency world, scammers are always searching and coming up with more avenues and ways to take advantage of it. For example, scammers may advertise fake Bitcoin wallets or exchanges or offer investment and business “opportunities,” promising to double your investment or give you financial freedom. And other ways to cash in on the hype and confusion. Always do your own research (DYOR), never give away sensitive information, and never part with your asset unless you are very confident.
Some of the Possible Scams that could be perpetrated on and with the Bitcoin cash system
#1 Ponzi Schemes
The principle of a pyramid scheme - taking money from new investors to pay previous investors, can be perpetrated using bitcoin cash.
Remember BCHJolly?
Some of us promoted it on our read.cash posts (including yours truly) and many users joined the platform. The BCHjolly scheme solicited BCH from its users in exchange for profits in cloud mining pools. It also rewarded users for recruiting others. As you can imagine, the site shut down. The few early birds made some profit while the later and larger users never got any returns on their investments in the end.
#2 Fake Websites and Apps
You may follow a solid tip from an expert but still fall victim by accidentally visiting a look-alike website or downloading a fake app. Lookalike apps and sites are designed to steal financial assets and credentials and spread malware.
Attackers can create a fake website with a similar URL to resemble an original and credible company. For example, www.crypto.com and www.crypt0.com are similar, making it hard to detect the difference. The first has the letter 'o' while the latter is the digit zero '0'.
Clicking on the lookalike link isn't taking you to the cryptocurrency investment that you've already researched. To avoid this, carefully type the exact URL into your browser, and if there isn't a small lock icon indicating security near the URL bar and no "HTTPS" in the site address think twice.
There are also fake cryptocurrency apps available for download through Google Play and the Apple App Store. Thousands of people have already downloaded fake cryptocurrency apps, reports Bitcoin News. Are there obvious misspellings in the name of the app? Does the branding look inauthentic with strange coloring or an incorrect logo? Take note and reconsider downloading.
#3 Phishing and Malware
Phishing scams target user details pertaining to online wallets. The hackers send an email to wallet holders targets with fraudulent links that lead to a website specially created to solicit important information from their targets. They are specifically interested in keys required to access funds within the wallet. Once the hackers gain access to this information, they can steal Bitcoin cash and other coins contained within the wallets.
They can also use malware to get access to victims' wallets and drain the funds. Malware can be downloaded by clicking links in your email, websites, and social media. For instance, there might be an email or a post on social media or websites that claim a certain program allows you to mine bitcoin cash for free. Download it, and you could get malware.
The best way to stay safe from phishing and malware scams is to avoid clicking such links and protecting yourself from malware.
#4 Cryptojacking
Cryptojacking is malicious crypto-mining that involves the unauthorized use of the processing powers of victims' devices (computer, smartphones, tablets, or servers) by scammers to secretly mine cryptocurrency. This slows down devices. So if you notice that your device is slower than usual, burns through battery power quickly, or crashes, your device might have been cryptojacked. Here is what to do about it:
Close sites or apps that slow your device or drain your battery.
Use antivirus software, set software and apps to update automatically, and never install software or apps you do not trust.
Do not click links without knowing where they lead and be careful about visiting unfamiliar websites.
Consider a browser extension or ad blockers that can help defend against cryptojacking.
Read more: 10+ Cryptocurrency Fraud and Scams You Need to Pay Attention to
Don’t Fall Victim to Scams Perpetrated Using Bitcoin Cash
As you users onboard to the new crypto technology it doesn't take long to recognize there's risk involved in these transactions. And I'm not just talking about the volatility of the market. Scams are everywhere, and the cryptocurrency world is not an exception.
Bitcoin cash in itself is an already volatile investment. Don’t increase your chances of losing money by falling prey to the various scams perpetrated in cryptocurrency. Stay alert for potential Bitcoin fraudsters and trust your instincts. If something seems too good to be true, it probably is.
As you consider investing in bitcoin cash, other cryptocurrency startups, and exchange platforms, be aware of the possibilities of losing your investments.
Before getting started
Understand the risk. Even if you don't fall a victim to these scams, the virtual currency market is speculative and volatile.
An investment that may be worth thousands of dollars on Tuesday could only be worth hundreds on Wednesday.
DYOR - thoroughly research any virtual currency platform or digital wallet provider before investing or disclosing sensitive personal data.
Don't invest and speculate in cryptocurrencies with money that you can’t afford to lose.
Don’t make an investment based on anonymous tips that you picked up from chat rooms or social media.
Don’t share your “private keys” with anyone. Keep them in a secure place.
Overall, be extremely cautious as you look for new investments and earning opportunities in cryptocurrency spaces.
This is a great and very informative article. It covers a lot of angles regarding BCH including the potential danger
I bookmarked this and will use this as a reference . BCH is not yet that well known here in our area, this would help me in educating my friends about BCH.
Great job and thanks for sharing this.