The Dark Side of Bitcoin: Scams, Hacks, and Shady Deals

Benefits of cryptocurrency

Most of the information out there about Bitcoin paints a positive picture of this digital currency. The data depicts Bitcoin as a fantastic innovation and investment asset. Stories of Bitcoin’s price rising and people becoming rich through investing in it are commonplace. Such positive notions of Bitcoin are good. However, they tend to hide the dark side of this digital innovation. Before exploring the dark side of Bitcoin, anyone can become a Bitcoin investor today through the trading platform.

Saying that Bitcoin has a dark side does not mean it is terrible. On the contrary, this only provides people with the correct information to help them make the right decisions regarding using and investing in Bitcoin.

This article focuses on the dark aspects of Bitcoin. It does not seek to discourage people from investing in Bitcoin.

Bitcoin Scams

Bitcoin scams are numerous and tend to vary. Overall, they involve scammers defrauding unsuspecting people of their Bitcoins. One of the most common Bitcoin scams involves crypto exchanges. Scammers can develop fake crypto exchanges or Bitcoin trading platforms to woo unsuspecting investors and steal their Bitcoins.

If one falls for the scammers’ trap, one becomes vulnerable to the scammers’ tricks. For example, scammers can trick one into using a fake Bitcoin account to trade Bitcoin. As soon as they buy Bitcoin, the scammers disappear with it before they can transfer it to their Bitcoin wallets. That is just one way that Bitcoin scams can occur.

Bitcoin Hacks

Bitcoin holders can also become hacking victims. That is where hackers obtain access to an investor’s Bitcoin wallet and can then steal or take control of it. Bitcoin wallets come with private keys. Every user has a unique private wallet key for accessing the wallet. If this wallet key lands in the wrong hands, somebody can easily hack it.

Having one’s Bitcoin wallet hacked can be a devastating blow. Some investors have significant amounts of Bitcoin in their wallets worth so much in US dollars. If hackers access an innocent investor’s account and sweep it clean, it will be difficult to trace the stolen Bitcoin. The growing value of Bitcoin has made hacking more lucrative.

Bitcoin Shady Deals

Finally, shady deals are another dark side of Bitcoin. Criminals and other entities find Bitcoin an attractive conduit supporting their shady deals. The fact that Bitcoin guarantees the anonymity of the users means that these criminals will use Bitcoin to conceal their identities and hence do their deals smoothly.

One of the notable examples of how criminals can use Bitcoin for their shady deals was the infamous Silk Road scandal. That was a powerful platform for conducting and supporting criminal and other shady deals ranging from drug trafficking and illegal weapons trade to money laundering. To conceal their arrangements, the network members used Bitcoin as the preferred means of payment.

Although law enforcement finally unearthed and stopped the Silk Road, many shady and criminal deals had already occurred thanks to Bitcoin. That is only one of the potentially many cases where Bitcoin is aiding shady deals. One must consider cases such as people using Bitcoin for infamous sex work online. For example, Bitcoin can be a perfect way to pay for online live sex without revealing one’s real identity.


Bitcoin has a dark side. Knowing this dark side can be a great way to ensure safety. However, use or invest in Bitcoin despite its dark side. After all, the majority of Bitcoin uses are okay.