Bitcoin Bank A Scam System That Has Disappeared

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Is Bitcoin a scam?

Adam Cohen of SeatGeek called Bitcoin a “scam”. Other people have compared Bitcoin to a Ponzi or pyramid scheme. Can Bitcoin be considered a scheme to defraud people?

6 Answers 6

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 designed to be used as money, not as an investment.

A Ponzi scheme is a type of confidence scam where people who think they are earning unusually high returns on an investment are actually being paid from their own money and that of later investors. If investors try and withdraw their original investment from the Ponzi operator, the scheme collapses because no actual profits exist and there is not enough money to return the deposited amounts. Alternatively the Ponzi operator may simply leave and take the investors’ money with them.

Similarly, a pyramid scheme is a type of confidence scam where people who “enroll” by paying a certain amount of money are made to believe they can make a large return on their investment by recruiting other people and receiving some portion of their enrollment fee. The scheme collapses because it requires exponential growth, so it quickly runs out of new people to enroll. The person starting the pyramid scam, who didn’t have to pay an enrollment fee, makes money off of all their referrals; while the people at the bottom parts of the pyramid, who cannot find anyone new to refer, are left with no return.

Unlike either of these situations, Bitcoin has no person “at the top” who collects money paid for bitcoins, or has to pay out when bitcoins are sold. Neither is there any kind of scheme in Bitcoin to harvest money off of unsuspecting people in complicated ways. Instead, bitcoins are bought and sold on public exchanges amongst members of the general public who must all obey the same rules. If someone has told you that Bitcoin is a moneymaking scheme, they have misconstrued it–bitcoins follow the same economic model as any other finite commodity and over time will tend to approach a price that reflects the value people ascribe to being able to use them. People who have made money off of buying and/or selling bitcoins are either lucky or have correctly predicted an increase in demand for them. People who earn bitcoins through “mining” are being paid for verifying and securing network transactions in a highly competitive market. In neither case is any kind of fraudulent activity or confidence scam happening.

Despite the fact that Bitcoin itself is not a scam, caution is strongly advised when entering into transactions with untrusted entities. As with any other valuable commodity, there are many people willing to separate your bitcoins from you in sneaky or fraudulent ways. Remember that for all practical purposes Bitcoin works just like cash. Bitcoin Ponzi and pyramid schemes do exist and if you fall prey to them you will suffer the consequences.

In addition, bitcoins are a very new and unproven type of money. Because their value depends on how widely they are accepted, they are susceptible to the same types of economic bubbles as any other commodity that is surging in popularity. The Bitcoin software is still in beta, and bitcoins should be considered “high-risk” from a financial perspective. You should not invest money into bitcoins or Bitcoin-related technologies unless you can afford to lose it! Even firm believers in Bitcoin tend to think it will take a while for the value of bitcoins to stabilise, and no one knows at what value that stabilisation might occur. Trade and transact safely!

Bitcoin System Review: Scam or Legit? The Ultimate Test

Last Updated: 30 March 2020

Bitcoin System is a trading robot that reportedly generates huge profits speculating on bitcoin. This robot is said to earn its users at least $200 daily from a deposit of $250. But is Bitcoin System legit?

From our investigation, Bitcoin System appears to be legit. This robot is among the few in the industry that has a nearly perfect online reputation. Most users appear satisfied with the results generated by this robot.

The robot also has good ratings on ease of use and customer services. Bitcoin System is fully auto meaning that no special skill is required to use it. The robot appears to be popular with both the experienced and inexperienced users.

Read this review to the end to learn more about Bitcoin System and the trading strategies you can apply to make the most out of it. You can go straight to this robot website by clicking the Trade Now link in the table below.

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  • Robot
  • Rating
  • Properties
  • Trade
  • 88% Claimed Win Rate – Appears to be legit
  • $/£ 250 Min Deposit
  • Accepts Debit and Credit Card

Is Bitcoin System legit?

    From the reviews that InsideBitcoins has analyzed, Bitcoin System appears to be legit. Most people who have tried it report satisfaction with its profitability. Bitcoin System appears to operate in full transparency given that it has made all the necessary disclosures including the technologies behind its robot. User reviews indicate that Bitcoin System is easy to use and has great customer services. Most users also report this robot has a seamless withdrawal process. Bitcoin System partner brokers also appear to be legit. We have determined that they are well regulated and have a good online reputation.

Bitcoin System has good ratings on independent consumer review sites including TrustPilot. This is a clear sign that most users are happy with it. This robot has an alleged win rate of about 89%. Consequently, it reportedly has the power to generate a consistent daily profit of $150 from a deposit of $250.

From the demo test, this robot appears to have such a level of profitability. The demo test reveals that Bitcoin System has an easy to use web-trader. Moreover, this robot comes with adequate educational resources to help traders familiarize with its platforms. Read our top bitcoin robot 2020 to learn more about trading robots.

What is Bitcoin System?

Bitcoin System is an app that utilizes bots to trade cryptocurrencies automatically. Bots like this one usually claim to be ahead of the market, which gives them an advantage and allegedly a high chance of profitability.

They are programmed based on complex algorithms that allow them to analyse financial news and the market within fractions of seconds. They then allagedly automatically place the most profitable investments for users. The platforms basically use a technology that cuts out human error completely. Most robots promise success rates of over 90% and for some of these robots, the promises are realistic, for others, they are not.

That is why we wanted to test Bitcoin System to determine if it is actually legit. From our background tests, Bitcoin System appears to be legit. As explained earlier, this bitcoin bot has great online reviews. Moreover, it appears to have made all the crucial disclosures required by users to make informed choices.

Bitcoin System allegedly relies on complex algorithms to read the bitcoin markets and make trading decisions. These algorithms are powered by advanced trading technologies including artificial intelligence and machine learning. Bitcoin System’s high alleged accuracy is as a result of these technologies and also the fact that it trades on huge margin. Even with the alleged accuracy level, there is still a significant level of risk in trading with this bot. Do not deposit what you cannot afford to lose.

How does Bitcoin System work?

Bitcoin System applies the same mechanism as other popular algorithmic coin trading apps that utilize crypto robots. These systems work as follows. You register to a service, if it is applicable, you verify your account. After that, you need to fund it with money.

Not all services have the same pricing models. For some, you usually have to pay a flat fee every month to keep your account on the platform where you can use the bots to trade cryptocurrency. For others, you have to rent the bots that do the trading for you. There’s also another pricing model that is popular with companies that have issued tokens during an Initial Coin Offering (ICO).

For these services, you have to buy the native token of the service, and hold a certain amount to use different bots and/or features on the platform. If you are ready to pay these fees, you can set up the bots. After you are done, you don’t have to do a thing other than waiting and hoping that your balance will increase.

Bitcoin System operates in partnership with a number of robot-brokers. These brokers’ responsibilities include handling deposits, facilitating transactions and providing leverage. For the record, a robot is not a financial institution and therefore does not have the legal mandate of handling deposits. As mentioned earlier, Bitcoin System brokers offer a leverage of up to 1:1000.

How to trade with Bitcoin System

Step 1: Opening an account

To use the Bitcoin System app, you’ll need to create an account. You’ll find a form on the right side of their homepage page where you’ll have to enter your full name and email. After that, you will be required to choose a password between 6 and 10 characters including letters and numbers.

Finally, you will have to select your country of residence and insert your phone number with the correct country code. After that, you will be able to move on to the next step which is demo trading.

Step 2: Demo Trading

Now that you have a Bitcoin System account, you can try trading in demo mode. You will have $1,500 available to trade in crypto with your demo account. To do that, all you have to do is click on the “Go to Demo” button on the left side of the screen.

You’ll see three statistics on the top: total profit, total balance, and winning trades (the trades that have resulted in profits). On the right side of the “Open Trades” tab, there’s a slide next to “Auto Trade.” To start your first demo trade, click on it and it will turn on. After a short period of time, you’ll see multiple trades that have been conducted by the crypto bots of the platform.

Analyze the results and determine whether this platform is worth your money. Please note that algorithmic cryptocurrency trading involves high risks.

Step 3: Deposit Funds

If you have come to the conclusion that you want to trade cryptocurrencies live on Bitcoin System, then you’ll have to first deposit funds into your account. Switch from the demo mode by clicking the “Go to Live” button on the left side of the page.

When you are there, click the green “Deposit” button, and the website’s administrators will reach out to you with instructions on how to deposit funds into your account.

Look for their email and follow the instructions in order to fund your Bitcoin System account. Robots like Bitcoin System connect to online brokers. Depending on what broker you are connected to, you will have different payment options available to deposit your funds. You can pay with debit and credit cards, some e-wallets and Bitcoin.

Step 4: Trading

As soon as your funds are credited on your account, you can start trading. Before that, you will have to decide on your trading settings. You will have to set up a daily stop loss, the maximum profits you wish to make in a day and how many trades you want to make daily.

You will also have to choose your investment amount for each trade. After that, you may also choose which cryptocurrencies you wish to trade with, depending on your personal preferences. If not, you can leave that to the robot.

You will see a red circle saying “Off” on the right side of the screen. Click it to turn it on. You are all set. All you have to do now is sit back and watch the robot trade.

Bitcoin System features

Alleged profitability

Bitcoin System claims to make a daily profit of up to $200 from a deposit of $250. The users’ reviews we have managed to analyze shows that this robot performs consistently. We have not done a live testing and therefore cannot guarantee how much you will make. You can try it with a small deposit of $250.

Seamless withdrawals

Bitcoin System allows users to withdraw their funds whenever they need. To withdraw, simply fill the form presented on their funds management page and wait for up to 24 hours for your money to reflect in your bank account.

Easy to use platform

Bitcoin System platforms are easy to use for all types of users including complete beginners. As explained earlier, this platform is 100% automatic.

Simple verification process

All you need to verify to trade with Bitcoin System is your email and phone number. The process should not take you more than 15 minutes.

Bitcoin System Review: the Verdict!

So, we have given the Bitcoin System a good rating based on performance, ease of use and customer service. The robot is also fully transparent given that it provides all the information that users need to make an informed choice. Bitcoin System has a lot of good ratings on review sites such as Trustpilot. From the reviews we have come across this robot is claime dto be profitable and easy to use. No special skill is required to operate Bitcoin System given that it is fully auto.

Even though Bitcoin System has a very high alleged profitability, it is not risk-free. The robot trades on a leverage of up to 1:1000 meaning that there is a likelihood of experiencing losses beyond the invested capital. One of the few disadvantages of Bitcoin System is that it does not have a negative balance protection feature. This means that users who fail to balance the risk are likely to blow their trading accounts.

Read the risk management guides carefully before using this robot. Also, ensure that you only deposit what you can afford to lose. There are a lot of heartbreaking stories about people who committed their retirement money to margin trading only to lose it all. A deposit of $250 is a good starting point with Bitcoin System.

OneCoin lawyer found guilty in ‘crypto-scam’

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A US lawyer has been found guilty for his role in the OneCoin cryptocurrency scam, which raised billions of pounds from investors convinced they were buying into a new digital currency.

A New York jury found that Mark Scott helped to perpetrate the scheme, routing approximately $400m (£310m) out of the US while working to conceal the true ownership and source of the funds.

Prosecutors said he made about $50m.

Mr Scott’s lawyers had said he did not know that OneCoin was worthless.

They said he was simply doing the job asked by Dr Ruja Ignatova, a co-founder of the Bulgaria-based OneCoin.

The federal jury in Manhattan rejected those arguments, finding Mr Scott guilty of conspiracy to commit money laundering and bank fraud.

US-based investors claiming to have been defrauded by the scheme are also attempting to sue Mr Scott for recompense in a related case.

In total, investigators believe as much as £4bn was raised globally via what is said to have amounted to a Ponzi scheme, with investors based in Uganda, China and the UK among other countries.

“OneCoin used the success story of Bitcoin to induce victims to invest under the guise that they, too, could get rich through their investments,” New York state attorneys said in one filing.

“This was, of course, completely false because the price of OneCoin was a fiction and not based on supply and demand.”

Dr Ignatova, an ex-McKinsey consultant, disappeared from view around October 2020. There has not been a confirmed sighting since.

However, the Bulgaria-based organisation behind OneCoin Ltd continues to operate and denies all wrongdoing.

“OneCoin verifiably fulfils all criteria of the definition of a cryptocurrency,” it said in a recent statement given to The Missing Cryptoqueen, a BBC podcast.

It added: “Our partners, our customers and our lawyers are fighting successfully proceedings against OneCoin. We are sure that the vision of a new system on the basis of a financial revolution will be established.”

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