Since its whitepaper was released in 2008, BTC has been declared dead more than 400 times. Mainstream media and TradFi professionals spread FUD daily, so we help you explore some of the most widespread misconceptions and understand why Bitcoin is legit, and it’s not a scam.
This is one of the most common misconceptions, and it has not aged well. No one controls or owns the Bitcoin blockchain or its underlying technology.
Bitcoin is neither a Ponzi scheme, a pyramid scheme, nor the world’s biggest scam. A Ponzi scheme involves a central organizer promising high returns to investors, who are then paid using funds from new participants rather than from legitimate profits or value creation.
Bitcoin, on the other hand, operates as a decentralized digital asset with no central authority or organizer. Its value is determined by supply and demand in an open, free market.
While some investors may engage in speculative or even fraudulent activities involving Bitcoin (as they can with any asset), Bitcoin itself remains transparent, and every transaction is verifiable by anyone.
Additionally, Bitcoin’s issuance was fully open to the world from day one. Unlike ICOs, stocks, or other cryptocurrencies that often allocate early tokens to insiders or require privileged access, Bitcoin had no pre-mine, no private sales, and no centralized entity controlling its distribution.
From the very start, anyone with a computer and internet connection could mine Bitcoin and participate in its network.
No Bitcoin community, supporter, or “maxi” can guarantee high returns or payouts through investment in Bitcoin. At the end of the day, your outcome depends on your entry point, time in the market, and risk/reward strategy—just like with any other asset.
And this is number two.
A zero-sum game in trading refers to speculative markets where one participant’s gain is often another’s loss. This can make short-term trading in Bitcoin feel like a zero-sum game, leading some to perceive it as fraudulent if they do not understand Bitcoin’s fundamental properties.
However, Bitcoin is not inherently a zero-sum game, even though certain aspects of trading can resemble one, raising concerns about Bitcoin fraud.
As Bitcoin adoption grows, it creates new utility for individuals, businesses, and institutions, benefiting the network as a whole. Examples include:
Bitcoin’s value proposition is based on its decentralized properties, distinguishing it from schemes designed to redistribute wealth without creating new, real value.
Nowadays, there are indeed many Bitcoin investment scams committed by fraudulent individuals. This is why educating yourself is the key to protecting your money and making informed decisions.
The fact that a small number of wallets hold a significant portion of BTC has often led to concerns about the manipulation of the Bitcoin market. Critics see this concentration as a potential risk for price manipulation and unequal wealth distribution, often comparing buying BTC to a pump-and-dump scheme.
We often hear statements like “Bitcoin is controlled by Wall Street” (BlackRock’s IBIT ETF is the most successful ETF in history!) or “Bitcoin is controlled by whales” (wallets with an enormous amount of BTC).
While mainstream media keeps repeating this message, it’s surprising how they fail to mention that almost 70% of the current Bitcoin supply is owned by individuals. This figure reflects the democratic nature of its ownership.
As Bitcoin adoption grows, ownership is becoming more distributed, and its large market size makes it increasingly resistant to manipulation as the ecosystem matures.
We like to stress that BTC offers equal opportunity for anyone to acquire it and operates in a transparent system where wealth distribution can be monitored. This contrasts with traditional financial systems, where power and wealth are often concentrated “at the top”.
Bitcoin was launched by passionate individuals “from the bottom”, and today it has become a global, egalitarian phenomenon.
“Unlike tangible assets like gold, Bitcoin is entirely digital and has no intrinsic value.”
We hear this statement quite often, along with “Bitcoin is backed by nothing”, “Bitcoin doesn’t generate yield”, and “Bitcoin is a scam!”.
Think of it this way: just as the internet revolutionized communication without having "intrinsic value," Bitcoin is changing how we define money, as well as how we store and transfer wealth.
Gold is valuable due to its semi-scarcity and the trust built over centuries. Real estate generates rental income. Bitcoin’s value comes from what it represents today and the yet unimaginable future uses.
Bitcoin offers a limited supply, decentralization, freedom, and the ability to move money instantly across borders with irrelevant transaction costs.
It is also an exceptional long-term store of value. These are all real utilities in today’s connected world and digital economy.
Critics claim that Bitcoin’s status as a store of value is still unproven due to its relatively short existence and often repeat that “Bitcoin is a scam.”
Unlike gold or real estate, which have a proven track record spanning centuries, Bitcoin is frequently seen as too new to be compared to such established assets.
However, this argument doesn’t hold up because innovation always starts somewhere.
Despite being relatively “new”, Bitcoin has already demonstrated its strength and reliability. It has grown from a small cypherpunk, revolutionary idea into a global asset used by individuals, businesses, institutions, and, more recently, governments.
Over the years, Bitcoin has survived market crashes, regulatory challenges, and cyberattacks, proving its ability to adapt to any scenario. It simply doesn’t care!
Its proven performance and increasing adoption show that its track record is only getting stronger. When it launched, Bitcoin’s market cap was $0, and as of January 2025, it has surpassed $2 trillion.
Critics argue that Bitcoin’s scarcity is artificial because its open-source code allows for replicas. Others believe its dominance may fade as newer, more advanced cryptocurrencies emerge, challenging its position as the most trusted digital asset.
However, these concerns overlook what makes Bitcoin unique and irreplicable—its immaculate conception and unparalleled adoption curve.
Bitcoin is not just code; it is a monetary revolution that was fairly and publicly launched with no pre-mine, no insider allocations, and no central authority controlling its distribution. It was mined from day one by anyone willing to participate, with no guarantees of success and no expectation of profit.
Unlike modern crypto projects that launch through ICOs or venture capital funding, Bitcoin emerged organically, driven by cypherpunks, early adopters, and independent miners, without any institution or government backing.
While many Bitcoin forks and alternative versions—such as Bitcoin Cash, Bitcoin Gold, Bitcoin Satoshi Vision, and Litecoin—have attempted to recreate or “improve” upon Bitcoin, none have come close to replicating its security, trust, and adoption.
Copying Bitcoin’s code is easy, but copying its decentralized network, its globally recognized brand, and the deep-rooted confidence it has built over 15 years is impossible.
Even if a “new and improved” version of Bitcoin were created today, it would start with zero adoption, zero network effect, and zero security, making it an unattractive option for investors, institutions, and long-term holders.
The Bitcoin network is already deeply entrenched in the financial world, with billions in institutional investment, sovereign adoption, and a growing global user base.
There is simply no incentive for anyone—whether individuals, corporations, or governments—to migrate to an unproven alternative when Bitcoin already serves its purpose as the most secure and decentralized digital asset in history.
In short, Bitcoin is not just another cryptocurrency—it is the first and only truly neutral, decentralized digital money with an adoption level that no new project can ever replicate.
There will never be another Bitcoin.
Many believe that governments may impose strict regulations, bans, unfavorable policies, or adverse tax policies on Bitcoin, creating uncertainty about its future and adoption.
This concern is understandable, as BTC operates outside traditional financial systems, giving individuals financial sovereignty. However, this challenges government control over the money supply, taxation, and capital flows, making Bitcoin a potential target for restrictions.
However, we know that Bitcoin runs on a decentralized global network, meaning no single state can shut it down entirely. Even in countries with strict regulations—such as China, which declared Bitcoin trading illegal in 2019 and mining illegal in 2021—investors and believers continue to use it through peer-to-peer networks.
Banning BTC is nearly impossible and highly impractical, as it could hold back innovation and new growth opportunities.
Many sovereign states, starting with the United States of America (see Donald Trump's re-election campaign and his pro-Bitcoin statements and actions), are leaning toward regulating Bitcoin rather than banning it outright.
Institutional bodies are creating rules to properly regulate Bitcoin, while Wall Street’s money and ETFs are increasingly integrating into the financial markets.
Therefore, it is highly unlikely that Bitcoin will be banned. We have already reached escape velocity!
High Volatility and Too Many Price Swings: Bitcoin’s price can fluctuate significantly over short periods, with historical drawdowns of 50%, 60%, or even 70%. These extreme price movements have occurred multiple times in Bitcoin’s history and will likely happen again.
Bitcoin detractors often argue that its volatility makes it unreliable for wealth preservation compared to stable assets like gold or real estate. However, Bitcoin’s volatility has some clear benefits—some even say, “volatility is vitality.”
Until today, Bitcoin’s volatility has generated unparalleled gains for long-term holders.
Volatility creates opportunities for new investors, attracting attention and increasing interest in the leading cryptocurrency. The constant price movements provide multiple entry points for the public, encouraging more people and institutions to learn about and adopt Bitcoin.
While the price swings may raise concerns of a monumental, global pump-and-dump scheme, they ultimately reflect Bitcoin’s growth as a new type of financial asset.
We shouldn’t forget that Bitcoin is a global asset that can be traded 24/7 with nothing more than an internet connection.
It is still in its early stages, much like the internet was in its infancy. Over time, as more Bitcoiners participate and adoption expands, volatility is expected to decrease, and the speculative label will likely fade.
It’s a long-term game to play.
Bitcoin’s proof-of-work mining process requires significant energy, and many detractors argue that its energy usage is environmentally unsustainable. However, this claim is highly misleading.
BTC mining consumes significantly less energy compared to many established industries. For example:
Additionally, Bitcoin mining is often powered by an energy surplus and helps stabilize electricity grids during low demand—while pausing during high demand.
In other words, Bitcoin avoids energy waste and fosters green energy projects, encouraging innovation. This includes repurposing mining-generated energy to heat homes or grow crops in cold regions.
Rather than being wasteful, Bitcoin mining improves energy efficiency and offers real-world benefits. This is already happening in countries such as the US, South America, the Netherlands, Scandinavia, and Africa, among others.
A brief list of small actions and considerations to prevent losing money due to crypto scams:
Besides this useful list of tips to avoid scams, we recommend using a hardware wallet (AKA cold wallet) to store your Bitcoin. This is a superior solution for safeguarding your BTC, as it keeps your seed phrase (the master “password” to your wallet, composed of 12, 18, or 24 words) offline. This makes the wallet immune to hacking and online threats caused by constant internet exposure.
Cold wallets are ideal for long-term storage, providing enhanced security and protection against scams and phishing attacks.
Moreover, using Bitcoin self-custody is highly recommended because it gives you FULL CONTROL over your funds, eliminating the need to trust third parties such as centralized crypto exchanges or Web3 intermediaries.
By holding your seed phrase and private keys to access your funds, you truly own your Bitcoin. This ensures that no one else can hack, block, restrict, or misuse your holdings.
Remember: “Not your key, not your Bitcoin.”