This article is about how online scammers helped create Monero and how to avoid similar scams. This is a story about anonymous benefactors and their privacy technologies.The time is 2014 and you’re shopping on the internet. You go to a Bitcoin forum and you come across this new crypto currency called Bytecoin. It seems interesting so you read on and it claims to solve all of the privacy issues that plague Bitcoin. It seems to be the real deal. Top Bitcoin developers like Gregory Maxwell say the cryptography is solid. “The privacy achieved by Bytecoin is better than any existing in production privacy tools” – Gregory Maxwell.
It has even been used on secret online sales to facilitate illegal business for years. No one has ever been caught using Bytecoin so it has a track record to support his bold claims about privacy. As you go further down the page you start reading about the technology behind Bytecoin and you’re perplexed at what you find. Bytecoin technolgy actually solves a lot of Bitcoin’s privacy issues. Privacy questions that prevent Bitcoin from being used for everyday transactions.
Bitcoin is new internet money but it should not be used for everyday transactions due to privacy issues.
All of Bitcoin’s transactions are open for everyone to see. They have this basic format, there is a “from” column a “to” column and an “amount” column. That’s for every transaction. They follow this pattern and all the transactions are open for anyone to see and authenticate for themselves.
This openness seems great at first. You can check all transactions and make sure that no one is up to any funny business. Then you realize that anyone can see how much money you have and what you do with your money. Although no names are used people can still follow your transactions using the to and from identifiers this means that people can track how much money you have and what you spend it on. For example, let’s say that your grandma gives you nine thousand dollars as a graduation gift. If she mails the money or deposits it in your bank account nobody knows about the money. If it was given as Bitcoin, anyone can trace the transaction back and understand that nine thousand dollars was given to you. This is bad because people might ask you for money, people might even attempt to rob you since they can see that you have so much money. You do not want people to track your spending habits for numerous reasons. Bytecoin solves a lot of the privacy issues that affect Bitcoin. By employing private identifiers and other techniques, you can still check all events and make sure that no one is cheating.
This level of privacy is only possible through the brand-new crypto currency Bytecoin. Criminals have been using Bytecoin for years for its privacy technology. As you read on about Bytecoin, someone says that Bytecoin has been used on darknet markets for years because it has great privacy technology. Dark net markets are online markets similar to eBay but these markets can offer anything for sale. You can find ads for hitmen, drugs, firearms and many other less than legal services. Since Bytecoin was used on these markets, 80% of the coins have already been claimed and mined. Bytecoin is a great crypto currency and you wish that you had heard about it earlier. You might still buy some Bytecoin because it has great privacy engineering and you can see it being used a lot more. The dark net market story does not have anyone supporting it. No one outside of a few people on the thread have ever heard about Bytecoin and no one claims to have exploited it before. This perfect private crypto seems to be a pre-mine scam unfortunately. What is a pre-mine scam? It is kind of complicated, but here is a simple definition. A pre-mine scam is where someone makes a fake background story for a crypto currency in order to convince you to buy the crypto currency. The truth is that they own most of the crypto currency already.
Here is an example with a car company to help you understand a little easier. Let’s say a guy came to you and offered you the opportunity to invest in a brand-new electric car company. They tell you that the car company has been around for years but is only large-scale in Dubai. The car company is looking to expand to other target areas. Soon he offers you one percent of the company for a hundred thousand dollars. Since most of the local Dubai investors have bought up most of the company over the years this sounds like a tempting situation. But the person’s story is all a lie. This company is counterfeit and if you invest in this company, you’ll just be giving him a hundred thousand dollars and not going to get a return. The same thing happens with Bytecoin. Bytecoin’s history is all made up, it was not used on dark marketplaces and was just recently created. The creators previously owned eighty percent of it and they expect that people will, in time, buy Bytecoin from them in exchange for real money. They set up this thread and filled it with an assortment of interesting stories about confidential online crypto organizations you know. Although the background legend is fake, the technology is very real. The privacy technology is open it has been checked by many people and it has been considered to be trustworthy. People imitate Bytecoin and establish some modifications and we now have the new crypto currency Bitmonero. The idea behind Bitmonero was to have all the great technology of Bytecoin but without any of the pre-mine scam. It would be nice to say that Bitmonero fulfilled its goals but it is clear that it didn’t. What happened was the creators were also scammers. They constantly moved against the community’s wishes. The Monero development team continued to develop and improve Monero. The team’s hard work and commitment has made Monero one of the best privacy crypto currency platforms on the market today. Let’s have a quick recap of the legend Bytecoin. It has enormous privacy technology but an uncertain background. Bytecoin is then found to be a scam so Bitmonero is created.
The point I’m trying to make here issues are that the crypto currency community is constantly changing and adapting, but you have to do your research and investigating before you drop a single penny into the realm of crypto currency. Make sure you know who and what you are investing with. The time you spend looking into your investment platform of choice could save you thousands of dollars from avoiding potential online crypto scams.