50+ Reasons To Prove 'Bitcoin Is Scam and Fraud' – Chapter[2] R[1-4]

'Bitcoin Is Scam and Fraud

A research can be described as anything backed by facts and figures and which connects scattered dots to draw a full picture. It does not necessarily be a plain classical blank and white PDF file with only charts and tables.

With these series of articles, I have tried my level best to uncover the cashless agenda behind this complex P2P distributed ledger technology as easy to understand as possible for the layman.

In Chapter#1 we discussed:

  • History of money from Barter To Bits
  • The key differences between money vs currency vs bitcoin
  • Why Gold is hated by the banking elite but loved by the poor
  • How Gold standard was adopted, then corrupted and finally wiped out through the introduction of free floating currencies
  • We exposed the true identity of both Bitcoin and Ethereum creators as Nick Szabo – The polymath and head of the cypherpunks living in United States of America.
  • We discussed how bitcoin was coded inside N.S.A building and the motives behind using Japanese and Russian characters for Bitcoin and Ethereum respectively.
  • We exposed the banking elites involvement in funding crypto startups and silent development of the RScoin and FEDcoin.
  • In short Chapter#1 exposed the cashless society agenda for a complete mass surveillance and financial enslavement.
In this chapter we will discuss why a blockchain technology which should only be used for the welfare of mankind is instead used to create:
  1. An inefficient trust-less digital payment system that is over 9,000 times slower at maximum capacity compared to traditional payment processing systems like VISA.
  2. An energy hungry virtual currency which is not only a moral poison but also a deadliest environmental poison.
  3. Decentralized cryptocurrencies that are actually controlled via centralized exchanges which largely operate outside the control of financial regulators and offer almost no transparency. Thus leaving cryptocurrencies vulnerable to gaming and manipulation.
  4. A bogus digital currency, whose price can be easily manipulated through third-party digital currencies such as Tether or through bounty campaigns via speculaton of morally corrupt social media influencers.
  5. A new bogus fiat currency out of thin air that does not qualify any of the fundamental characteristics of money.
  6. An unregulated, border-less, anonymous and irreversible e-currency that has become the favorite currency of cyber-criminals, drug lords, darknet marketplaces, child abusers, money launderers and tax evaders.
  7. An electronic-cash system just to please the corrupt elite of the society with a so-called deflationary currency (Bitcoin) where the poor has literally no chance of participating thanks to its extremely high transaction fees, complex technical design and mining monopoly.
  8. A trust-less and lawless currency model which offers opportunities for any criminal mindset to easily create a Pyramid / Ponzi scheme or exit scam (ICO) and get away easily with over $116,000,000 of investors money by investing nothing more than just a cool fancy website with fake promises, infringed whitepaper and stolen photos from LinkedIn profiles.
  9. A ridiculously vulnerable currency that can be created out of thin air ($7,000,000 in just six months)  by simply stealing computational power (leaching CPU cycles) of infected computers through crypto-mining malware.
  10. An unregulated currency that has literally opened the Gates of Hell. From buying deadly drugs, child abuse imagery, explosives, to hiring a hitman, Bitcoin has transformed online payments into a child’s play. Thanks to Bitcoin, the darknet marketplaces are booming today with almost each darknet website making over $1,000,000 sales per day. 

This research if read thoroughly, will prove without a single doubt, that if Darknet is the Door to Hell then Bitcoin is its Key.

 

Chapter[2.0]  R[1-4]: 50+ Reasons To Prove 'Bitcoin Is Scam and Fraud'
Chapter[2.1]  R[5-10]: Bitcoin Is Neither Currency Nor Money      

Chapter[2.2]  R[11-12]: Biggest Lie: Bitcoin Transaction Is Cheap and Faster
Chapter[2.3]  R[13]: Two Major Reasons Behind Bitcoin’s Rising Price & Demand 
Chapter[2.4]  R[14]: 5 Different Bitcoin Forks: Which One Is The Digital Gold?
Chapter[2.5]  R[15]: Bitcoin = Biggest Bubble of All Time
Chapter[2.6]  R[16-19]: If Darknet Is The Door To Hell Then Bitcoin Is Its Key
 
Chapter[2.7]  R[20]: Bitcoin’s Biggest Promoter McAfee, Is An Accused Rapist and Murderer
Chapter[2.8]  R[21-22]: Bitcoin Is The Most Insecure Currency Ever Created In History
Chapter[2.9] R[23]: Bitcoin Is Easily hacked: Complete List of Cryptocurrency Hacks [2011-2018]
Chapter[2.10] R[24]: Malware Is Easily Injected In Bitcoin’s Blockchain
Chapter[2.11] R[25]: Biggest Myth: 51% attack Is Impossible & Bitcoin Is Unstoppable
Chapter[2.12] R[26]: ICO Means 'Best Exit Scam': A Criminal's Guide To Become a Millionaire
Chapter[2.13] R[27]: Crypto Exchanges are Mostly Scammers - List of all Hacked Exchanges [2011-2018]
Chapter[2.14] R[28]: Bitcoin Mining Favors The Rich and Criminals
Chapter[2.15] R[29]: Comparing Bitcoin Mining To Gold Mining Is Ignorance
Chapter[2.16] R[30]: Bitcoin Is a Deadliest Environmental Poison
Chapter[2.17] R[31]: Bitcoin Confiscation & The Executive Order 6102 of 1933
Chapter[2.18] R[32]: Bitcoin Creators Hate 'United Future World Currency'
Chapter[2.19] R[33]: WannaCry Ransomware Attack Was Launched by N.S.A as Bitcoin Publicity Stunt
Chapter[2.20] R[34-39]: Strong Reasons How NSA and FBI Are Promoting Bitcoin Adoption
Chapter[2.21] R[40-44]: Economists Call Bitcoin a Joke and Greater Fool Theory
Chapter[2.22] R[45-47]: Online Retailers Don’t Consider Bitcoin as Medium of Exchange
Chapter[2.23] R[48]: Bitcoin Is Advertised Heavily To Increase Its Adoption Rate
Chapter[2.24] R[49-50]: Bitcoin Victims End Up Signing Petitions For Help

Reason[1]: 1% Owns 90% of all Bitcoin Wealth

  1. Paper Currencies and Banks are the First Corporate Scam.
    1% owns 50% of all Word Wealth - Source
  2. Crypto Currencies and Exchanges are the Second Corporate Scam.
    1% owns 90% of all Bitcoin Wealth

Nothing shocked us more after the shadowy character of Satoshi Nakamoto as much as this fact. Almost 99% of all the bitcoin addresses have less than one-tenth of a bitcoin or in other words 99% bitcoin users hold less than 1/10th of bitcoin which is roughly less than $400 USD bogus worth at present.  

  • Currently, in April 2013 Winklevoss Twins (Facebook rival folks) have claimed that they own nearly 1% of all the bitcoins in existence.
  • NSA Character, Satoshi Nakamoto holds around 6.0% of all the bitcoins in circulation. Right now, there are 17 million bitcoin in circulation out of a total 21 million bitcoin.

This makes Bitcoin even worse than fiat paper currencies in ratio wise, where 1% of the elite owns 50% of all the world wealth. Bitcoin and paper currency is scam at corporate level because they only make rich, richer and poor, poorer. The poor barely gets to participate in the system because the market is ruled by vultures from every corner.

Poor gets nothing in return except wasting his hard earned income through taxes or by buying worthless bits.

The table below shows data of top 100 richest bitcoin addresses for 2017-09-30. Carefully read the data interpreted by the following chart, which is enough to explain who actually controls this cashless economy and its price movements.

I chose only those Bitcoin address which account for less than 1% of all BTC addresses to ensure, I choose the richest BTC holders only.

1% owns 99% Bitcoins

Much of the math has been shown in the image above which I hope needs no explanation. Lets calculate how many Bitcoins did these 1% elite actually owned on 30th September, 2017.

Bitcoins owned by 1% Elite = 4,407,541 + 3,878,047 + 3,511,840 + 2,839,640 + 114,852
                                             = 14,751,920 BTC ~ 15 million BTC

Bitcoins owned by 99% Users = 2,127 + 14,147 + 87,785 + 418,929 + 1,317,946
                                                 = 1,840,934 BTC ~ 2 Million BTC

I would now leave it up to you whether you want to call these Users as Test Dummies or Greater Fool, anything you think would suit better because from the stats above it can easily be concluded who fooled whom.

Majority of these 1% bitcoin holders (or creators) are those who mined Bitcoins using either laptops or home computers without investing much in expensive hardware (like ASICs or GPUs) or wasting too much electricity thanks to no competition or negligible hash rate.

In short they are the ones who created worthless computer bits and are now selling off these bits gradually to “Greater Fools” who fell a prey to their speculation and high promises of future profits.

Reason[2]: How are Bitcoin Prices Manipulated & Stabilized By Cryptocurrency Exchanges?

When there is no law, the law of jungle prevails. Same goes with unregulated cryptocurrency exchanges.

The crypto market is surprisingly unregulated and is therefore always vulnerable to gaming and manipulation.

Because of no check and balance or audit by any legal financial authority, cryptocurrencies are easily influenced by speculations, scams, rumors, and most importantly artificial price inflation rather than true demand of the currency itself as a means of payment.

A Bitcoin that costed around $6,000 in November 2017 suddenly skyrocketed within a month to a record high price of $20,000 in December 2017!

Economists, financial authorities and experts kept on warning investors against the sudden rise in BTC prices because there was absolutely no thinkable logic behind this massive bull run. But no one listened because at that time, every crypto user was blinded with greed and everyone dream of becoming the next big millionaire.

People sold their homes, cars and invested all their life savings in these bogus computer bits, in hope of making high returns. The result as expected was such that once the artificial increase in Bitcoin prices stopped, Bitcoin suffered a straight 50% drop in value within next 30 days in Jan 2018 to just $10,000. bitcoin prices artificially increased using tether cryptocurrency

Bitcoin today trades at mere $6,000 in June 2018 which is back to the same price it was trading before the artificial manipulation in November 2017.

How Crypto Exchanges Artificially Inflate Bitcoin Prices?

Bitcoin prices are artificially increased by faking demand in two ways:

  1. Using an altcoin called Tether. 
  2. Using trading bots to buy Bitcoins within the exchange.

1. Using Tether To Cross Trade Bitcoins Between Exchanges To Increase Prices

Two finance professors called John M. Griffin and Amin Shams, at the University of Texas, used algorithms to analyze the blockchain data of Bitcoin for millions of wallet addresses. The revelations that they arrived at, shocked the world.

On 13th June, 2018, they released a research paper which concluded that a digital currency called Tether was used to artificially increase Bitcoin prices in 2017 through three major cryptocurrency exchanges namely Bitfinex, Poloniex, and Bittrex

In 2017, cross trading of Bitcoin in these three exchanges via Tether transactions led to 50% of the meteoric rise in Bitcoin and 64% of other top cryptocurrencies (Dash, Ethereum Classic, Ethereum, Litecoin, Monero, and Zcash).

In simple terms, this is how the manipulation is done:

  • When Bitcoin prices drop, Bitfinex buys Bitcoins in large numbers with Tether from Poloniex and Bittrex, thus faking the demand for Bitcoin which ultimately leads to increase in Bitcoin prices.
  • When Bitcoin prices start to rise, Bitfinex stops Tether flow and starts selling Bitcoins at the high price to their customers.
  • Thus they overvalue one cryptocurrency using another and sell these worthless computer bits to greater fools who buy these bits with their hard earned cash, thinking it is digital gold!

Some interesting bytes from the research itself:

Consistent with Tether being used to buy Bitcoin when prices drop, we find a statistically and economically strong reversal in Bitcoin prices, but only following negative returns. The Bitcoin reversal did not exist before Tether was prevalent in the market and disappears during the period when Tether stops being printed.

The Bitcoin returns are highly correlated with the magnitude of Tether issuance, and no abnormal returns are observed in months when Tether is not issued.

Our results are consistent with Tether being pushed out onto the market and not primarily driven by investors’ demand,

Overall, we find that Tether has a significant impact on the cryptocurrency market. Tether seems to be used both to stabilize and manipulate Bitcoin prices.

Is Bitcoin Really Un-Tethered?

 

Any Guesses who founded Tether Holdings Limited?

ICIJ Offshore Leaks Database listed data from Paradise Papers leaks, which in November 2017 claimed that Tether Holdings Limited is founded by none but the Bitfinex exchange officials Philip Potter and Giancarlo Devasini, in the British Virgin Islands in 2014.

Tether Holdings Limited in Paradise leaks

Imagine how non-techy people are being fooled by the same elite, who mine this bogus cryptocurrencies and then manipulate prices via cross-trading of bitcoins via Tether and then finally when the prices are pushed high, they sell the same worthless bits at thousands of dollars to these hypnotized crypto-enthusiasts who dream of becoming millionaires overnight.

2. Using Trading Bots To Buy Bitcoins Within The Exchange To Increase Prices

Since crypto exchanges are mostly unregulated, investors using these exchanges are always vulnerable to scams and frauds.

One of the biggest Bitcoin exchange hacks include Mt.Gox which was hacked in 2014 and users lost all their 850,000 bitcoins worth $450 Million at that time.

Mt.Gox was the biggest exchange of its time and it was popular for many things which includes price manipulation using “trading bots” called Willy and Markus.

According to a research done by researchers Neil Gandal, JT Hamrick, Tyler Moore, and Tali Oberman, Mt.Gox fraudulently acquired 600,000 bitcoins (BTC) valued at $188 million by manipulating Bitcoin prices from $150 to $1,000 within just two months using trading bots, who did not actually own any actual bitcoin while trading! 

bitcoin prices manipulated using trading bots in 2013

Any gusses how the robots fooled humans? 

It was really simple!

Markus bot would buy Bitcoins from Mt.Gox users. His account was fraudulently credited with claimed bitcoins that he actually did not own!

Unlike Markus, Willy bot did not use a single ID; instead, it was a collection of 49 separate accounts, which would purchase large number of bitcoins from customers using fiat currency that it did not actually own!

Guess what would happen next?

The customers were disallowed withdrawals!

Bitcoin trading bots - markus and willy

Thus the two bots artificially increased the trading volume, inflating Bitcoin prices from $150 to $1,000. The exchange would then start selling Bitcoins at high prices to new customers.

In 2017, in a trial in Japan, the Former Mt. Gox, CEO Mark Karpeles, confessed that the exchange itself operated the “bot” accounts and that the trade volume was manipulated by the exchange itself.

I hope you may now have a clear idea of how Bitcoin prices are faked to rise and fall.

Unfortunately those people who loose their life savings by investing in these bogus cryptocurrencies, end up signing petitions for help. But how can help come, when they willingly dived into this unregulated ocean of greed

Am I wrong then, when I say Bitcoin is scam and fraud..

Reason[3]: Bitcoin is a Cashless Society Project to Study Human Behaviour

Through Bitcoin, its 1,800 copy-cat altcoins and a decentralized blockchain, the banking elite and N.S.A succeeded in studying people’s response to a cashless system.

A decentralized P2P system was necessary because it was the only way the elite’s could attract people to enroll volutarily as test dummies.

In the very start of Chapter#1, I mentioned categorically that the primary aim behind creating Bitcoin is to use Artificial Intelligence (AI) and Data mining to study human reaction towards a cashless monetary system via a lawless / trustless (decentralized) Peer-to-Peer electronic cash system and Immutable (Un-editable) Blockchain technology on its initial testing phase.

ULTIMATE GOAL BEHIND BITCOIN:
  1. Executing the Cashless Society Agenda by imposing Centralized Fiat Cryptocurrencies issued by central banks for Absolute Financial Enslavement.
  2. Using Editable Blockchain technology along with Biometric technologies (using Iris scanning initially and gradually moving to RFID surgical chip implants from 2020 onwards) for creating Universal Digital Identity (UDI) to record general data of every living human being from birth to death for mass population surveillance and thus Absolute State Domination.

I will emphasize again that none of these goals will be implemented by force because the Cashless Society Agenda is implemented through mind programming to convince people that such technologies is in their own self-interest and may even deliver personal benefits. People will be brainwashed enough to demand it themselves in near future as seen with Syrian Refugees.

Then I discussed in detail in Chapter[1.12] by disclosing the silent convergence of events between Bitcoin, RFID, Blockchain and Cashless Society agenda and how Accenture and Rockefeller Foundation is funding ID2020 to identify and track every living human being via blockchain technology before 2020 and via RFID chips before 2030 respectively.

They have collected enough data through cryptocurrencies to study human behaviour online to a cashless economy but before executing the bigger plan offline, they are experimenting with smaller groups of humans first.

100% Pakistani crypto users I met don't even know that the first ever working model of a bio-metric electronic currency on ethereum blockchain was tested in Pakistan!

In chapter[1.12] you read how UN’s World Food Program (WFP) is using iris-scanning combined with ethereum blockchain technology to allow Syrian refugees in Jordan to purchase food without using local paper currency, the Jordanian Dinar but by using digital tokens or digital vouchers on 200 retail stores.

But before implementing this bio-metric electronic currency model on over 100,000-500,000 Syrian refugees who can not afford smartphones or internet, the mini model of UN’s cryptocurrency was first tested on a small group of no more than 100 people living in the Sindh province of Pakistan.

first biometric cryptocurrency tested in Pakistan, Sindh by UN

During my research I was literally shocked when I heard of Pakistan while listening to a presentation given by Robert Opp, who is director of innovation and change management at the United Nations World Food Program.

While speaking at the Blockchain Future of Trust Summit, September 28, 2017, infront of the richest elites of Netherlands at Hall of Knights, Robert Opp confessed that their model of electronic currency was tested for the first time on a small community living in Pakistan.

By looking close at the picture Robert Opp shared in his blockchain presentation slides, I could easily see the UN officer sitting on a Sindhi ajrak (traditional shawl) while inspecting the NIC cards of two Sindhi women.

Thanks to the Sindhi ajrak and the dresses of people in picture, I could confirm that the electronic currency build by United Nations on ethereum blockchain was tested for the first time in Sindh province of Pakistan, that is where I actually live! :)

Watch from [10:54] onwards to know where Robert Opp mentions Pakistan.

The only difference between digital tokens used in Jordan and in Pakistan was using National Identity Card (NIC) containing fingerprints as identification, instead of using Iris scanning.

A group of 100 Pakistani citizens living in Sindh province were given digital tokens on ethereum blockchain that they could use to buy ration from selected retail stores via mobile SMS.

Notifications were received as text message on recipients cell phone. The device at retail store and the recepient cellphone was connected to the ethereum blockchain via cellular networks and communicated via mobile SMS.

cryptocurrency payments via SMS in Pakistan

At present the UN is experimenting with Iris scanning to gradually prepare society towards digital identity and cashless transactions but in future they will ultimately move towards RFID chip implants because people with no hands have no fingerprints and those with no eyes (the blind) can’t get an identity with iris scanning.

Furthermore, fingerprint identification and Iris scanning are much slow, expensive and offer no storage or contact-less tracking features as offered by RFID chips.

World Food Program (WFP) provides help to 80,000,000 people in 80 countries and they aim at transforming all their food distribution system to cashless, which means getting 80 Million poor people on ethereum blockchain in order to track and monitor their buying habits using Artificial intelligence (AI) of the machines where all this data will be stored.

They are first testing a centralized digital currency on 80 million poor people across the globe before they gradually shift their cashless society agenda to global financial sector with little to no opposition.

The elites have always used charity to emotionally blackmail a society before imposing their real agenda, as happened with IMF and world bank. Which were founded to end economic instability and hunger but instead they snatched the economic autonomy from third world countries by turning them to slaves.

Reason[4]: Bitcoin Is a Fairy Tale Script Written By Nick Szabo

Do we really need to discuss anything further on Bitcoin creator after Chapter#1: Bitcoin Is Scam?

Satoshi Nakamoto is for sure not Japanese but in fact of Hungarian descent and his true name is Nick Szabo.

NaKamoto SAtOshiNicK SzAbO

Nick Szabo Created Bitcoin

I strongly recommend you read the following sub-chapters to know more about this entire drama behind using Japanese (Bitcoin) and Russian (Ethereum) characters:

It has now become crystal clear that Satoshi Nakamoto, the so-called founder of Bitcoin, is neither Japanese or a single man or a group of ordinary internet enthusiasts interested in cryptography. Satoshi is a pseudonym used by "National Security Agency (NSA)" and pen name of Nick Szabo, to unfold their beta experiment for the world's first digital currency i.e. Bitcoin.

The error less, cleanly drafted white paper released by Satoshi in 2008 and his flawless 575 forum posts over a short interval of time and over 3,000 lines of source code (which is now over 100K!) uploaded on github is enough an evidence to prove that Bitcoin is not the work of a single Japanese man with broken English but an organized secret project backed by the world's best mathematicians, programmers and cryptographers under the supervision of none other than Nick Szabo.

[Click To See Enlarged View of Bitcoin Secret Team]

The secret team of Bitcoin developers led by Nick Szabo

N.S.A was working on cryptocurrencies ever since the birth of internet and published its first white paper on a decentralized digital currency in 1996, almost twelve years before Satoshi's white paper was made public in 2008.

The group led by Nick Szabo secretly looks after the Bitcoin project and defends any attack against it behind the curtains in supervision of their elite masters.

Just in March 7, 2014 when the world started treating “Dorian Nakamoto” as the suspected inventor of Bitcoin algorithm, Satoshi Nakamoto who tried hard camouflaging for consistent five years, was seen commenting on P2P Foundation forum saying that he is not Dorian Nakamoto:

I am not Dorian Nakamoto - Nick Szabo forum post

He disappeared in 2011 and then he reappeared in 2014 to post on a public P2P forum and now he disappeared again. This is enough a proof, this group of Satoshi is very much alive and they are working behind curtains for an agenda that will take everyone by surprise very soon.

So the Disney style story of a Japanese man coming from nowhere to save the humanity against this corrupt fiat monetary system controlled by Bankers is nothing but a poorly scripted fairy tale written by none other than Nick Szabo and N.S.A.

Let’s now move to the logical explanations of why Bitcoin badly fails to qualify for all major characteristics of money and is nothing but a Greater Fools Theory being sold as digital gold to the non-techy investors.

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5 comments

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  1. That's a great thing brother. People should know about Bitcoin's big fraud. Thanks a lot for sharing this kind of information. May Allah bless you with strong imaan, taqwa, piety, purity of heart, good manners and good deeds.

    ReplyDelete
    Replies
    1. thank you buddy. These words act as fuel to me that helps me to do better. God bless you buddy

      Delete
  2. thank you for sharing this amazing blog with us. this is a very nice and amazimg post .thank you

    ReplyDelete
  3. I have always had a strong reservation about bitcoins, the fact that it lacks a regulatory body makes it prone to risks and scams. thanks for sharing

    ReplyDelete