Updated: Feb 3
Answer, “same old same old”.
Hopefully, you haven’t lost money with the latest Bitcoin fall. And I bet you didn’t give a fake Elon Musk half a million dollars in a crypto scam. It has fallen 15% after breaking 40k and I did write in previous blogs that I would rather trade it than own it as of now.
This is not “I told you so” because I do not have a clear opinion on the future price. No one knows for sure.
The question is this, are the criminals taking advantage again, even in 2021, I read headlines like this all day.
“The Good Ol’ Fake Crypto Giveaway Scam Still Generates Over $500K a Week, Report”
“Using Elon Musk's Name, Bitcoin Scammers Make Away With $580,000 In A Week”
“Scam uses Elon Musk’s name to trick people out of US$2 million in bitcoin”
Scammers have received nearly 1 million in a week by pretending they are Elon Musk and asking them, via this fake façade to send crypto currencies to his alleged wallet and then he will send them real money back. Yes, it’s true.
Believe it or not, there are still lots of people out there who think Elon Musk is going to give them money if they send him Bitcoin and this recurring scam has been revived in the last few days, catching out innocent people. Call them naïve, not sure, but would Elon Musk send me money???? Holy hell no?
This type of scam is not new. In fact, it is probably the best-known scam in the crypto universe. They started to spread in late 2017 to early 2018, in the middle of the last crypto craze, when it reached $20,000 and we were all talking about it, as now.
At that time, the cyber crooks were posing as the original crypto personalities like Vitalik Buterin.
Vitalik Buterin is a Russian-Canadian programmer and writer. He is best known as a co-founder of Ethereum and as a co-founder of Bitcoin Magazine. If you were into the cryptos at the time, you can see why some were scammed.
People reacted to his and other crypto celebrities’ apparent official tweets. Twitter users unwittingly believed the tweets were from the real accounts of the celebrities and rushed to send their money. Note, untraceable if sent to a Crypto wallet. Perfect crime?
This type of scam peaked in 2020 when Twitter users witnessed with astonishment how the official and verified accounts of great personalities (like Elon Musk, Barack Obama, Joe Biden, or the official Apple Store) promoted crypto giveaways.
On July 15, 2020, around 130 high-profile Twitter accounts were compromised by outside parties to promote a bitcoin scam. Twitter and other media sources confirmed that the criminals had gained access to Twitter's administrative tools so that they could alter the accounts themselves and post the tweets directly.
So, the moral of the story.
I have worked for some of the bigger online brokers and they were clamped down by their regulators to ensure some of their affiliates, basically influencers bringing traffic to their platform, did not endorse these fake adverts.
I recall, a Scandinavian lawyer I was assigned to, investing over 100k euro because he saw a celebrity chef endorse a crypto, it was a scam, and the celebrity had no idea he was being used this way.
I told the lawyer, and he was angry, obviously, and I assure you this guy was start, the problem is this scandal and others just perpetuates the "dodginess" of crypto’s in many people’s minds.
So, naturally we are curious and intrigued by cryptocurrencies and as influencers, real or fake, keep bombarding people via all forms of media about the potential rewards of owning cryptos, scams will continue.
Another true event I was privy to, working in Eastern Europe at the time, one agent, asked a client to send $50,000 to his Crypto trading account, to begin. The client obliged unknowingly sending it directly to the agents own crypto wallet. The agent was never to be seen again.
I personally own some crypto currencies, but I often prefer to trade them via a CFD platform because of the massive volatility. This is risky but as an experienced trader, if a catch a decent trend, I can make some good money, I never hold a position overnight because the swaps (overnight fees) are scandalous.
So, to conclude, I am not giving an opinion to either buy them or trade them and from the recent massive publicity and backing by institutional investors and celebrities, the topic and asset will not go away.
On Wednesday 13th Jan 2021, European Central Bank President Christine Lagarde took aim at Bitcoin’s role in facilitating criminal activity, saying the cryptocurrency has been enabling “funny business.”
“For those who had assumed that it might turn into a currency -- terribly sorry, but this is an asset and it’s a highly speculative asset which has conducted some funny business and some interesting and totally reprehensible money-laundering activity,” Lagarde said in an online event organized by Reuters.
Fahim Ahmadi reporting in Bitcoin Magazine for Bloomberg wrote yesterday.
“According to Bloomberg, bitcoin’s 9 million percent price rise makes it the best performing asset of the last decade. But what if I told you that even in 2021, Bitcoin is still one of the most undervalued assets there is?” Wow, big statement.
The contest will go on, those who back Bitcoin and those that oppose it. The establishment and the new tech millennials, who back them.
I’m sticking to my guns, if I can catch a upward or downward trend trading Bitcoin I am happy, not too keen to buy more today.
With leverage of 2:1, and a volatile price swing, some days of $5000, do the math.!
The chart below reads like a heart monitor. I bet some heartbeats are also unpredictable when buying Bitcoin.
Please note, these are my opinions, remember, “an opinion is like an ar**hole, we all have one”.
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