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Confessions Of a BitCoin Scammer

Confessions Of a BitCoin Scammer

http://nerdr.com/bitcoin-exchange-sca...
THE BITCOIN EXCHANGE SCAM:

"Hi Nerdr, I could not find an email address to contact you and have some information for you.

Let me first say who this message is from. I own and run a Bitcoin trading exchange. Here many users buy Bitcoins and sell Bitcoins for dollars. As you know it has been a great time for Bitcoin trading with a large rise in value over a very short period of time.

First I started like the others. I wanted to trade the bitcoins for the dollars on the Bitcoin forum like others. Then I started my own Bitcoin website to do this. Some people from the Bitcoin forum used it and were happy. Some told their friends and so on and so on. It grew like a mushroom. I want to say again, first it was all good and clean, no mess, very honest.

Then I had my big idea. I wanted to make more money. The number on the exchange. A number. I could change it in the programming. Not too much, because their are other exchanges to balance, but a little would be okay to do. So I did it. I increased the Bitcoin value a little. Say from $1 to $1.05. No one noticed and many were happy to see it go up. I was making people happy and the forum enjoyed the fun times with many dreaming big money! haha.

Now I change the Bitcoin price by hand nearly everyday now. I increase the number and more people give me money. Sometimes I let the files do this. It is a miracle like I have a bank haha. I give them numbers and they give me money. I thank god everyday.

They are greedy. I don't care if I cheated them. I wonder is it bad? I have a nice life now and will marry soon. We will buy our first house soon with my Bitcoin money the greedy have gave me.

I am blessed to be alive."



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Nothing always finds its true value.

The only way to create value in Bit Coin is to increase demand, just like with a pyramid scam or snake oil. There's a very good reason Bit Coin promoters all sound like snake oil salesman; they are..

"Get it while it's hot people! Amazing profits await!"

The only way to profit is through deception and fraud, because there was never anything of value to begin with.

What is that value of an anonymous transaction?

Maybe it's a silver dime.

So one buys $1000 bitcoins to make a hundred (frn) dollar anonymous transaction.

If a bitcoin has a current value of 2 Silver silver Dollars then, one only need 2.5 bitcoins to make the same anonymous hundred dollar transaction.

Bitcoin is a market driven currency. Will the value off an anonymous transaction ever drop to zero?

Free includes debt-free!

Its not anonymous.

Its not anonymous. That is a lie. There is video footage of one of the founders saying it isnt anonymous.

it is anonymous.

BTC's blockchain is open source. But that block chain doesnt say what was in the box you bought. Could be an OZ of gold; might be a dead cat. Its all in the perceived value of whatever tangible asset is being traded. If you dont like gold or dead cats, dont open the box.

But if you just want to take a quick peak in the box it will require a fee. Who knows? Maybe theres gold, or better yet maybe you know some people interested in dead cats?

Sorry cant' argue with the clueless.

0

Free includes debt-free!

Shroedinger

Isnt the best method to pursue this.

So, the cat is in the box. Alive or Dead? "Who cares, I hate cats." Therefore the cat (alive, or dead) has no perceived value to the cat hater.

Absolute nonsense. Does high

Absolute nonsense.

Does high demand for Apple iPhones make iPhones a pyramid scheme?

Does high demand for Oil make Oil a pyramid scheme?

Pyramid schemes are when DELIVERY of the product DEPENDS on NEW DEMAND FOR THAT PRODUCT. So someone buys X today but he can only get delivery of X next week when new people sign up every day until next week.

You will find that supply-demand have nothing to do with pyramid schemes.

A pyramid scam is dependent upon a fresh supply of suckers

"You will find that supply-demand have nothing to do with pyramid schemes."

Getting people to buy in is the only way to create in value a pyramid scam. A pyramid scam is dependent upon a fresh supply of suckers demanding to participate, and the only way to profit off those suckers is to get them to think they're going to profit off the suckers they can lure in themselves.

It's one big happy family of snake oil salesman preying on the people they see as here to give value to their scam, and it always ends the same way, with a collapse because there was never anything of value there to begin with.

There was merely a way to extract value from suckers.

It's all dependent upon creating a demand through the promise of profit, and I say there's no bigger scumbag than somebody selling a pyramid scam to their friends and family.

A poor smear attempt

This article is complete nonsense and an obvious smear attempt, poorly carried out.

The BTC price is determined by the average ticker price from the various exchanges.

Each exchanges ticker price is determined by the last "settlement price" that bitcoins were traded at. Bitcoins are traded via purchase orders and sell orders. When a purchase order BID price matches a sale order's ASK price, then a settlement occurs and bitcoins are exchanged from the seller to the purchaser - just like in any other exchange.

The difference is that on some bitcoin exchanges (such as btc-e.com), you can ACTUALLY SEE ALL THE OPEN PURCHASE AND SELL ORDERS right there in front of your eyes before you make an order. What other exchange will show you that? The NYSE keeps that info to themselves so they know when and by how much they can manipulate markets via high-frequency large-volume trades.

Bitcoin exchanges are by far the most open, honest and reliable exchanges out there. They are reliable, because unlike the comex, nymex, nyse there's no leveraging, margin trading, naked shorting, . Bitcoin exchanges deal only in Bitcoins they actually have and currency that's actually on deposit at the exchange.

The reason silver and gold hasn't gone anywhere in price is because the metal exchanges are FRAUDULENTLY manipulating the price by flooding the market with paper metal that does not, will not and can never be matched by physical metal. They also invoke arbitrary margin calls during bull-market rallies as what happened a few years ago when silver crashed from $50 to $30.

Silver and Gold will NEVER rise like Bitcoins UNTIL the Comex is exposed and it collapses. Then you will see silver and gold move hyperbolic several hundred fold.

Yup...

I knew bitcoins were a failure. Too much room for hacking/scamming fraud. Stay away from it. Any electronic currency including credit run by our own banks can be manipulated for their 'greater good' and our demise.

Isaiah 2:4
And he shall judge among the nations, and shall rebuke many people: and they shall beat their swords into plowshares, and their spears into pruning hooks: nation shall not lift up sword against nation, neither shall they learn war any more.

Tweaking the price

Tweaking the price by fractions of a percent, and hiding it in the code so that no one would never know... I'm so glad that this could never EVER happen on a gold exchange. Oh wait.

Totally fake.

The comment doesn't even make sense. Look at any of the exchanges and you'll see the owners don't set the price, it's buyers and sellers that do that. At most he can influence the market. Either that or he didn't run an exchange at all just and sold bitcoin above market value and honestly there's absolutely nothing wrong with that because if someone is willing to pay then that IS the market value.

Fiat money is bad, unless its

Fiat money is bad, unless its bitcoin ;) At least frns have the tangible value of ink and paper. Prepare to be down voted and attacked by the bitcoin sales people who run rampant here.

Already happening

This post was up to 10+ but as you can see now. I'm not worried about it though, the truth hurts and they don't want face the fact that they are getting scammed or are scamming. Pump and Dump.

"Never be afraid to raise your voice for honesty and truth and compassion against injustice and lying and greed. If people all over the world...would do this, it would change the earth. "
— William Faulkner
twitter.com/@Battleforce3327

Pump and dump. Maybe you

Pump and dump. Maybe you should also look into paying off the dp mods to put this on the front page or in the originals section?

Maybe

I believe that they will do as they need to, if they feel it is important enough to do so. They know that any issues dealing with Bitcoin are very touchy, and many don't want to "Stir the Dung", as we are really here to Promote Freedom and the Message of Liberty.

"Never be afraid to raise your voice for honesty and truth and compassion against injustice and lying and greed. If people all over the world...would do this, it would change the earth. "
— William Faulkner
twitter.com/@Battleforce3327

So you are charging for the service of converting $ to bitcoin.

It is called arbitrage. Coin dealer also charge premium when changing $ to silver or the other way around.

In a free market, competitors will say, "Hey, he's charging 5 bucks. I can provide that service for $3.oo."

May the one that offers the most for least win! Customers control the game.

Free includes debt-free!

When you hide...

a fee and portray it as just part of the market price then it is called FRAUD and people are in prison for doing it. Monkeying around with bid/ask prices is THEFT and FRAUD and therefore CRIMINAL.

Ron Paul says one of the very few valid roles of government is to prosecute fraud and enforce contracts...

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~wobbles but doesn't fall down~

Does the grocer tell you he marked up the eggs?

And how much.

If someone else sells good eggs cheaper, I head to that market.

The market, if it is free and open takes care of frauds faster than government.

One can instantly decide never to deal with a cheater.

Free includes debt-free!

Seriously??

You seriously can't figure out the contractual difference between????:

1) A retailer - that has no contractual obligation to certain prices (unless specified by a contracted supplier)

and

2) A neutral service provider that provides a medium for THIRD PARTIES to agree on exchange price

Mt. Gox handles approx. 80% of all bitcoin exchanges. According to Mt. Gox's Terms of Use https://mtgox.com/terms_of_service Mt. Gox provides a service that allows third parties to agree on a price and then transact an exchange if they wish and Mt. Gox then charges a commission/fee according to a published schedule.

All bitcoin exchange's terms of service (explicit contracts) are practically identical. If Mt. Gox or any of those other exchanges meddle with the reported prices and price averages then they are BREAKING THEIR CONTRACT and therefore breaking the law and committing contractual fraud.

For the reported prices on the bitcoin charts to drop 25% rapidly multiple times, then the exchanges go offline then the price is rapidly restored in an hour or so is evidence of unnatural manipulation. The buyers and seller certainly wouldn't naturally exhibit this behavior multiple times in a span of two weeks or so. The exchanges are FIXING the price which is FRAUD according to their published contractual obllgations!!!

What makes this even more heinous and fraudulent is that 70% or so of all bitcoins are held by the EXCHANGES! http://www.loper-os.org/?p=1009

Your zeal is interfering with your critical thinking processes and perception of reality. Splash some cold water on your face or something! Wake up from your delusion! It's not too late... ;)

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~wobbles but doesn't fall down~

That's not arbitrage. An

That's not arbitrage.

An example of arbitrage is buying something at place X and selling the same thing for more money at place Y.

Arbitrage serves to provide price uniformity across the exchanges and also provides liquidity at those exchanges.

An example is someone buying bitcoins at unpopular exchange (with poor liquidity) for $85 and then selling those bitcoins at a popular exchange for $90. The person makes $5 profit and price moves to $87 at exchange 1 and to $88 at exchange 2. As a result the overall market benefits as the prices are more uniform across the exchanges and more liquidity is added to the non-liquid exchanges.