3 More Stories That Put A Damper On Bitcoin Reputation

By Evan Ducktator on ALTCOIN MAGAZINE

The lack of crypto education, nimble scammers, and impotent security caused prejudices and mistrust to everything connected to the crypto industry. Just for the record — in 2018 crypto community lost $1 billion in hacks. It’s time to root out everything that may lead to Bitcoin and the other coins crush. As for me, the best way to do that — learn from past mistakes.

Here are 3 stories that had a tiger by the Bitcoin tail and almost led to its elimination.

Extra 184 Billion Bitcoin Bug

Long story short. In 2010 BTC had no code catching suspicious activity with transactions. One hacker was up to no good sending extra 184,467,440,737 Bitcoin and splitting it between two addresses. Luckily, Satoshi Nakamoto noticed that there were too much Bitcoins and caught the hacker red-handed. Satoshi launched hardfork, changed the record and averted Bitcoin collapse.

Bitcoin Savings And Trust AKA Pirate Ponzi

Bitcoin Savings and Trust was founded buy Trendon Shavers who called himself a Pirate. He stated that he is a successful Bitcoin trader and promised everyone who deposits money into his “trust” 7% return weekly. However, he bit off more than he could chew and tried to reduce the return percentage. It turned out to be a classic Ponzi scheme. Shavers was spending his gravy train on casinos, fancy houses and luxurious purchases. After all, he was fined $40 million for financial fraud involving 700,000 BTC.

BitConnect Drama

BitConnect founders stated they have a very smart trading bot that was able to turn your $1,000 into $36,000. Thus, it’s investment program offered investors a 1% daily return that looks almost like a wonderwork. They also launched BCC token with $2.6 billion market cap and rewarded you if you brought your friends. Such a scheme was a magnet for noob investors. However, on second thought, it appeared to be a Ponzi with separate levels and collapsed within a short time. After BitConnect crush, the BCC token dumped from $500 to $0.5.

There is no good crying over spilled milk. However, we should teach new investors not to trust everything that offers you a good profit. I hope that in the future there will be fewer scammers or at least, we will learn how to recognize them.