Bitcoin is a digital cryptocurrency based on the peer to peer model where all transactions are noted in a public ledger available to the entire network.
The currency is not centralized which means that no one person or entity controls it – it’s the entire community.
Thus it cannot be artificially inflated and an individual can’t simply add funds to their wallet without this being authorized by the entire network and reflected in the public ledger, which means that it can’t be falsified.
This is what makes the system essentially foolproof and secure.
Is Bitcoin a scam? Many people have the Bitcoin scam idea formed, that the currency is somehow an elaborate plot or a convoluted plan to steal their money. This is simply not true.
Not only that, but since the process is controlled by the entire network, a bitcoin scam would be next to impossible. Everything that happens on the network is referenced and compared to previous transactions. Thus no one person can manipulate it in any way, shape or form.
Bitcoin is also completely legal in most of the world. There are some political debates about it but as of now the cryptocurrency is considered legal. Where does the value of the currency come from?
Why would someone who accepts bitcoins as a trading method sell you a laptop for, say 3 bitcoins (note that this price is completely arbitrary and for the sake of argument)? Well, because money are given power by the people.
If that person decides that they will accept bitcoins, whatever their motive, then you can simply use your mined or purchased bitcoins to shop with them. It’s the same deal with trading with dollars.
Just because dollars are an acceptable currency in the US doesn’t mean that a newly-found tribe on a tropical island that has had no contact with the outside world (again, talking for the sake of argument here) will accept dollars as a valid payment method for goods and services rendered.
At the end of the day, Bitcoin is not a scam. In addition, the idea of using Bitcoin in a scamming
scheme is simply ridiculous. Bitcoin is a very secure alternative to your normal and even digital banking.
As long as people you want to trade with accept Bitcoin, you can trade whatever you want with them. And if they don’t, you can always exchange your bitcoins for another accepted currency.
Bitcoin simply gives you an option. Whether you want to use it or not – that choice remains with you.