IS BITCOIN SAFE TO USE?
SHOCKING NEWS: Your banks are committing fraud, race discrimination, money laundering for drug cartels, rigging interest rates and bribery…!
Is bitcoin safe to use? Before we answer that, let’s discuss the alternative…
Banks and financial institutions are mean to be trusted and respected places for us to place our money with.
We are mean to trust them with our hard earned cash…
But did you know that most of the major banks in the world are involved in bribery, fraud, discrimination and are being fined billions of dollars for their offenses…
The question has to be asked:
WHERE DOES THE MONEY COME FROM TO PAY THESE FINES?
IS BITCOIN SAFE TO USE?
The folks at Alternate.org share an interesting thought on this:
“The banks are very clever about things like fines, and in some cases, they actually have ways of making you pay for them. When HSBC got hit with a giant money-laundering fine, customers got letters soon after noting certain “changes.” HSBC, for no reason it cared to explain, would be taking longer to deposit monies into accounts. What the bank was really doing was increasing the “float,” or soaking up interest on the money in between the time you deposit a check into your account and the moment it shows up there. Was there any link between the money-laundering fine and what happened to your account? Makes you wonder.”
It makes it look like we pay for it in the end!
They further go on to show, that if you take legal action against a bank, even if you win, you may end up paying:
“There’s some very interesting fine print on fines buried way down in the terms-and-conditions agreements you have to sign when you open a bank account with big names like HSBC, TD Bank, and PNC Bank. Basically, if there’s any legal disputes over your account, and the bank has to fork over any fees, like attorney fees and so on, you get to pay them. In other words, if you sue your bank over a credit card dispute, you may have to pay for the bank’s losses, even if you win.
Here’s HSBC’s clause: “You agree to be liable to the bank for any losses, costs or expenses the bank incurs as a result of any dispute involving your account. You authorize the bank to deduct any such losses, costs or expenses from your account without prior notice to you.”
And what is scary about all of this, is that we sign the agreements and allow it.
Next time you get a document from the bank, you may want to ask your lawyer to explain it to you first…
So back to the fraud…
Here is just a tiny list of some of the frauds and cases that have recently been fought:
On 11th April 2016, Reuters announced that Goldman Sachs paid a fine of $5.06 billion. This settled claims that it misled mortgage bond investors during the financial crisis.
in addition, Goldman will pay $875 million for other claims with other agencies.
Settlements were also settled with JPMorgan chase ($13 billion), Bank of America ($16.6 Billion), Citibank ($7 billion) and Morgan Stanley ($3.s billion)
“We are pleased to put these legacy matters behind us,” a Goldman spokesman said in a statement.
Goldman Sachs failed to report a US fraud case. On 9th September 2010 they paid £17.5 in fines.
On 2nd April 2014, Goldman Sachs and 10 other companies paid £250 million in fines. The European Commission claimed that they were running a global illegal cartel.
The Economic Times reported that a former Goldman Sachs banker paid $4.5 million in fines for fraud. The banker was invoicing a client for fictitious accounts.
Goldman and Morgan Stanley paid $35.5 million in fines. This was for improper handling of post-crisis mortgage foreclosures.
Other financial institutions paid over $200 billion for ‘questionable behavior’ according to CNBC.
JPMorgan Chase paid in November 2013 $13 billion for lying to Fannie Mae and Freddie Mac.
Barclays were ordered to pay $2 billion fine for fraud during run up to the 2008 financial crisis
JPMorgan admit that every large bank in the US committed mortgage fraud.
In 2011 JPMorgan Chase admit to foreclosing on thousands of military families. They had no good reason to do so.
In 2012 Wells Fargo paid $175 million. They had put in place discriminatory and predatory subprime lending practices.
In March 2010 Wachovia was fined for laundering billions of dollars in illegal drug money.
In July 2016 HSBC was fined $1.9 billion for laundering Mexican drug trafficking money.
Recently reported on 29th November 2018 Deutsche Bank headquarters raided over money laundering.
JPMorgan has agreed to pay $264m to settle a US probe into its practice of hiring well-connected Chinese “princelings” to win business.
The settlement is the first to arise from a 2013 Securities and Exchange Commission inquiry over whether bank hiring practices breached the US Foreign Corrupt Practices Act. The 1977 law bans companies from paying bribes to overseas officials to win business.
Laundering money for drug cartels…
Rigging interest rates…
Bribing foreign officials…
NO major wall street executive one went to jail.
One of the reasons, that no one goes to jail and they can ask such questions as “what law was broken’, is that many of these cases get settled out of court.
This means they they do not have to admit any wrong doing and it saves them money on legal fees and long court cases.
Salon.com states: ‘Bank fines are simply baked into financial business. Until fines are much, much bigger and perpetrators at the top face the possibility of prosecution, the crime spree will go on.”
If you would like to read a horror story of bank fraud and fines, check this massive list out.
In fact what happened in these fraud cases was described by Business Insider as “The Biggest In History”
WHERE DOES THE MONEY GO?
It is the SEC and US Justice department give fines for:
Concealing risky products…
Kicking soldiers out of their homes…
Trying to scam bailout money…
The SEC has a list the banks whose activities ‘led to or arose from’ the financial crisis. You can see the list here. You might recognize some of the names listed.
This list does not include cases by:
The US Commodity Futures trading Commission…
The Consumer Financial Protection Bureau…
The Department of Justice…
The Office of The Comptroller of the Currency…
Or other agencies.
But where does the money go?
According to Alternate.org it goes to the following:
The Federal Reserve Board
The Office of The Comptroller Of The Currency
The British Regulator
Relief for the people who lost their homes (this is a trivial amount)
Billy Jacobson is ‘a former DOJ officer.
He has gone on record as saying that the fines don’t pay for coffee and donuts for investigators.
Instead, the money has to go the U.S. Treasury. Restitution for victims is rare, and constitutes a trivial amount of what the DOJ brings in. In 2011 the DOJ took in $2 billion in judgments and settlements, and only $116 million went to restitution.
Barry Ritholtz of the Big Picture, says: “Only a portion of the settlements collected go to the actual victims,” stated Ritholtz. “For the most part the money is used to fund more investigations.”
In other words the victims, almost never get any help!
SO WHY USE A BANK THEN?
Very good question…
Could it be we are familiar with banks and a habit from previous generations.
Until recently we had no option but to use a bank. The world is changing though.
Let me share with you some thoughts about why we need a bank account from Investopedia
They claim we need a bank account because:
3) Saving & Investing
Based on the above content, I would say bank security in not so good for us.
There is a list of 555 banks that have closed on the FDIC website.
At Wikipedia there is a list of bank that have closed since 2008. The list is quite long.
Credit card theft and fraud is huge. At Creditcards.com it states: “The Federal Trade Commission’s online database of consumer complaints has compiled 13 million complaints from 2012 to 2016, with 3 million in 2016 alone. Of those, 42 percent were fraud related, and 13 percent were identity theft complaints.”
FT.com also states “Recently disclosed results showed Citigroup, JPMorgan Chase, Bank of America and Wells Fargo took a combined $12.5bn hit from soured card loans last year, about $2bn more than a year ago.”
Secure? You be the judge of that?
Banks are often closed weekends. Most banks close about 5pm until 9am the next morning (closed more than 50% of the time)
According to Westpac in this day of high speed communication, it still takes 3 days to clear a check (cheque)
Smart Asset.com state that “If you’re sending money to another country, it may take as many as five days for the recipient to receive their funds.”
I am living in Thailand. I asked my bank in The Philippines to transfer money to my account in Thailand. They stated that they needed an original signature to do that. which meant I would have to do a document transfer from Thailand to Philippines.
According to Forbes.com 1.7 billion people do not have access to banking.
Is any of that convenient?
3) Saving & Investing
Typical bank saving rates, are according to Bankrate.com, 1.80% to 2.25% per annum (In some countries it is worse)
US inflation rate for 2017 was 2.1% according to The Balance.com. This means with most bank accounts, investors and savers are actually losing money…
So is there a benefit to having a bank account?
Or do we only use it because there is no other option?
BECOME YOUR OWN BANK
Recently prepaid debit cards allow online transactions. It is not yet possible to do all online transactions with these cards. They do allow people to transact without a bank.
Paypal and Venmo, also opened up the world of online banking to us. With these services, we can transact business, accept online payments and transfer money.
We can transfer money using services like Western Union around the world.
Each has their own charges and pros and cons, but what is exciting is that we can bypass the banks if we want to.
There are new services growing that are taking the world by storm.
Coins.ph and it’s sister company Coins.th is growing. I can transfer money to anyone with an account in seconds anywhere in the world.
Coins.ph allows users to pay:
Government housing contributions;
And a whole range of merchants all from an app on their smart phones.
Coins.ph also have an exchange. Users can by Bitcoin, Etherium, Bitcoin Can and Ripple all from the dashboard in seconds.
You can withdraw money through banks, and stores, even a door-to-door delivery service.
You can also make money by referring other people.
It’s like a bank on your cell.
Coins.ph are not alone.
There are hundreds of services popping up all the time from WeChat in China To Airpay. Square Point of Sale, Google Pay, Paygo Wallet, Android pay and many many more.
The world is changing and the banks are falling behind…
Old banking systems…
Slow payment processors…
Expensive transfer systems…
Worst of all corruption, fraud and losses on a scale that should be illegal.
For some reason it seems to be largely ignored by the governments.
Sure, they seem to take an interest, but if they wanted to could they not stop the practices?
And when they do fine the banks, most of the money goes to government organizations (and not the victims)
Is it possible that they are all working together?
IS BITCOIN THE SOLUTION?
Until recently, the banks, financial houses and governments controlled money. This caused us hardship.
Well if you have read any of the other articles on this website, you will know that I am Addicted To Bitcoin
I and millions of other people think bitcoin it is an incredible solution.
The cryptocurrency platform opens up the world of finance to the whole world.
Bitcoin was not designed to make us money, but rather to give us freedom over money.
The whole objective of bitcoin was as “A purely peer-to-peer version of electronic cash would allow online payments to be sent directly from one party to another without going through a financial institution”
Bitcoin gives us financial control over our own money.
Making money is actually a side benefit.
If you had more control over your money, that should be a good thing, shouldn’t it?
If you could send money using bitcoin, anywhere in the world in seconds, would that be good?
If sending it only cost a few cents instead of the high charges that banks charge, would that not be a bonus?
If you could send any time of the day…
Even if the bank is not open…
You needed no 3rd party permission…
You would think that everyone would love the concept.
But it was not to be…
The Star said, Jamie Dimon said “he will fire any employee trading bitcoin for being “stupid””
He went on to say “I’d fire them in a second. For two reasons: It’s against our rules, and they’re stupid. And both are dangerous.”
He said it was against the rules, yet on 11th April 2018 JPMorgan again sued for bitcoin fraud.
JPMorgan has many suits for fraud with banking and fiat currencies. Now they are being sued in cryptocurrency. Now they are being sued in cryptocurrency.
Do you see a pattern happening?
DW.com state “Central banks in the US and Europe are warning about the cryptocurrency bitcoin.”
Business Today reported that “governments warns against cryptocurrency, says don’t get trapped.” They went on to say “There is a real and heightened risk of investment bubble of the type seen in Ponzi schemes which can result in sudden and prolonged crash exposing investors”
Express.co.uk reveal “Bitcoin price WARNING: ‘It’s a HUGE risk!’ Governments could BAN cryptocurrencies, Bitcoin and other cryptocurrencies like Ripple and Ethereum are under threat from governments who could ban the digital currencies, an expert has warned. “
If this was a detective show, would you not be thinking now that there might be a conspiracy theory going on?
The fraudulent banks are warning us that bitcoin might be a fraud and that we could lose all our money…
Governments that do nothing caution us about the dangers of bitcoin…
Did I read that right?
Something is wrong…!
The governments should warn us for doing business with banks involved in fraud.
Bitcoin is one of the most powerful financial tools the world has ever seen.
So why is Inc-Asean.com reporting “Why Bitcoin Is the Most Dangerous Global Scam in 20 Years When bitcoin inevitably crashes, inexperienced investors who believed the hype could lose everything.“
So why is all this negative press happening, when bitcoin seems to be a positive product?
Bitcointalk asks the same question. The answer is interesting.
It reports “the media earn money with news that provokes panic, in short the media make money publishing news that has a big impact.”
After Jamie Dimon called bitcoin a fraud, the price dropped.
A week later Jamie Dimon is being accused of market abuse in Sweden for bad mouthing bitcoin.
Is it possible that this negative press is market manipulation?
What do you think?
If you want a real insight, then watch this video:
So what should you do?
Is bitcoin safe to use?
You need to decide if bitcoin and cryptocurrency will be a long term trusted store of value.
Let’s look at the blockchain first. Blockchain is nothing more than a digital ledger of processed activity. Bitcoin sits on Blockchain.
It is permanent. You cannot change it
It is transparent and has not ever been hacked.
It’s decentralised so no one person or group controls it.
It is a secure system.
It is a permission less system.
Doesn’t that sound like the opposite of banks and governments?
Blockchain is here to stay. Thousands of companies and projects are now running on blockchain.
It is integrating into our society.
We cannot stop it.
Bitcoin cash “CEO” Bitcoin will be the greatest wealth transfer in history and could go to $1,000,000 per coin. Watch the video…
Is that worth investing in?
Those who understand bitcoin and cryptocurrency early on can make millions.
He goes on to say “If cryptocurrency fulfills it’s promise, and there is no indication it wouldn’t, then the equivalent of 1 bitcoin needs to be in the 2 to 5 million dollar range”
Today, bitcoin is $6700 a coin…
Now is that worth investing in?
I will let you answer that as I am not allowed to give you advice.
IS BITCOIN SAFE TO USE
Blockchain is the platform bitcoin runs on.
It is safe.
Never been hacked…
It’s permanent and cannot be altered…
So if the platform is safe, we need to look at bitcoin. Is bitcoin safe?
The PACE Project explain what decentralized is:
“A decentralized system is one which requires multiple parties to make their own independent decisions.
In such a decentralized system, there is no single centralized authority that makes decisions on behalf of all the parties. Instead each party, also called a peer, makes local autonomous decisions towards its individual goals which may possibly conflict with those of other peers. Peers directly interact with each other and share information or provide service to other peers.”
As a comparison, traditional money is centralized as explained in this post on Medium:
“System of traditional money is centralized, and the clear proof of it is that only government controls money and has the right to issue it. Try to invent your own money — you will be punished by the law. But nobody can prohibit you from inventing your own digital currency — it will cost as much as people are ready to pay for it, and now we can see the birth of new cryptocurrencies almost every day.”
The downside of a centralized system is that one group, one agency, one person controls it. In the case of the $US, the Federal Reserve controls it completely. We cannot do anything about it.
With a decentralized system. No one group or person controls it. It cannot be manipulated as the rest of the group prevent it.
This makes it safer for us!
You can see all the blockchain transactions taking place live here at this link.
It’s actually amazing to watch. Some of the transactions are massive.
This is a live ledger taking place.
You cannot do this with a bank.
In this article by Coin Sutra, they explain that transaction are not linked to people:
“Bitcoin transactions, by design, are not linked to a person or identity. Public addresses are used for transactions- alphanumeric strings publicly recorded on the blockchain.
A person’s name, physical address, or email is found nowhere in the transaction. But a person’s identity can still be tracked down using public address info and IPs.
That’s why Bitcoin transactions are called pseudo-anonymous.”
It is possible to track Bitcoin transactions. The media and governments inform the public that criminals can hide in the world of bitcoin.
That is NOT true.
“When creating a wallet, users are given an address that allows them to receive coins. This address is just a long string of numbers and letters, but each one is unique to the wallet.
This property of Bitcoin allows people to link wallets with real-world identities. For example, you send coins from your personal wallet to your exchange wallet. The wallet on the exchange could be linked to your identity.”
You will hear how you can buy guns, drugs and other illegal substances with bitcoin.
You can also pay for them in cash.
I have never bought a gun. I am pretty sure the dealer wants cash and not a traceable bitcoin transaction!
When the internet started, we were warned about how criminal activity would take over the world.
Of course there is criminal activity on the internet. We still can’t live without it.
There is criminal activity (by the banks) in the world of cash. We still want more of it.
Yes there is criminal activity in bitcoin and cryptocurrency. It’s all traceable!
So is bitcoin safe?
It no less safe than the other systems!
BITCOIN EXCHANGES HACKED
HOW I INVEST IN BITCOIN
I have been investing in bitcoin since Feb 2017. To see my full story you can read my book here.
It was an amazing journey.
I did make a lot of bitcoin and it changed my life. I went from almost broke to living an incredible lifestyle in Thailand in less than 1 year.
I cannot guarantee that this will happen for you.
But I am still investing in bitcoin.
And I use online programs to not only buy my bitcoin, but to also grow my bitcoin.
One of my mentors Dan Lok, says there are 3 big problems when it comes to making money:
1) People don’t know how to make money…
2) They don’t know how to keep money…
3) They don’t know how to multiply money…
Well I have the solution to that problem.
We are using bitcoin multipliers that compound our bitcoin and cryptocurrencies.
Albert Einstein once said “Compound interest is the eighth wonder of the world. He who understands it, earns it … he who doesn’t … pays it.”
Warren Buffet, understood compounding and said: “I always knew I was going to be rich, so I was never in a hurry to”.
So here is are my questions to you…
- Can you see past all the noise created by media, banks and governments?
- Would you like to get your hands on some bitcoin?
- If you see what I see, would you like to compound your bitcoin?
Last week, I was in Bangkok, with about 35 millionaires. We were discussing bitcoin strategies.
We are working with some of the top companies in the world and changing lives.
Every month, we have access to information that can transform your life.
Some of these guys earned between 15 and 40 million dollars last year alone.
I promise you my life has changed.
I went from $75 in my bank to living by the beach in Thailand in one year.
WOULD YOU LIKE TO JOIN US?
I work with a handful of new bitcoin investors each month.
This is what you will get:
Access to all the programs to grow your bitcoin
Access to specialized techniques we use.
Access to Facebook, Telegram, WhatsApp support groups
Regular online training meetings.
I share the techniques we use.
I do NOT charge you anything for working with me.
We are looking for people who are serious.
You have $1000 or more and want to get into bitcoin.
If you have less and are serious, we all consider you, but you need to tell us why we should work with you?
We work with a range of products, so after a quick discussion with you, you will know which is the right one for you.
Show you are serious about creating a stream of income for yourself.
We only work with the committed. You have to be a pleasure for us to work with.
But if we do, your life could transform…
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It is possible, that bitcoin and cryptocurrency is not for you. Consult a fully qualified professional financial advisor before investing.
Tim Bennett wrote this post ‘Is Bitcoin Safe To Use? Shocking Bank Fraud Will Make You Say Yes”. it is exclusive for Bitcoin Training Camp ©2018