Cryptocurrency: Navigating the Digital Money Landscape and Avoiding Scams

Cryptocurrency is a digital currency that is secured by cryptography.^[0] It is based on blockchain technology, which is a distributed ledger enforced by a network of computers.^[0] Cryptocurrency can be bought with fiat currency, such as GBP, and transferred between wallets, making it a secure and convenient method of trading money.

Application-specific integrated circuits (ASICs) are chipsets built to mine virtual currencies like Bitcoin and Ethereum, and are becoming increasingly popular due to their low energy consumption and maintenance needs.^[1] However, as cryptocurrency becomes more popular, so do the scams associated with it.

According to the Denver office of the FBI, about 46,000 people have reported losing more than $1 billion in cryptocurrency scams.^[2] Colorado has seen its share of victims, including a 61-year-old woman in Denver who lost $1.3 million in a Tether scam, and a couple in their late 40s who lost $1.2 million in a Tether investment fraud.^[3]

Mark Michalek, the Special Agent in Charge of the Denver field office, warns people to be aware of the warning signs of crypto scams and to not fall victim in the first place. He said, “As more people use and invest in cryptocurrency, the more crypto scams we see. The FBI will investigate allegations of crypto scams, but the best path is not to fall victim in the first place.^[3]

0. “Yachts Invest partners with Bitcashier to accept Cryptocurrency …” yachtsinvest.com, 5 Feb. 2023, https://yachtsinvest.com/blog/yachts-invest-partners-with-bitcashier-to-accept-cryptocurrency-payments/

1. “Cryptocurrency: An insider’s guide (free PDF) | TechRepublic” www.techrepublic.com, 5 Feb. 2023, https://www.techrepublic.com/resource-library/whitepapers/cryptocurrency-an-insider-s-guide-free-pdf-copy1/

2. “FBI: More than $1 billion lost in cryptocurrency scams as popularity …” denvergazette.com, 5 Feb. 2023, https://denvergazette.com/news/crime/fbi-more-than-1-billion-lost-in-cryptocurrency-scams-as-popularity-increases/article_5807978c-a32b-11ed-a7f4-c313b881fb62.html

3. “Coloradans lose about $25M in cryptocurrency scams, FBI says …” insurancenewsnet.com, 5 Feb. 2023, https://insurancenewsnet.com/oarticle/coloradans-lose-about-25m-in-cryptocurrency-scams-fbi-says