Is Bitcoin Diamond a Ponzi scheme? Here are various reasons proving the same:
Brief insights on security and hard forks
Assuring security along with reliability is highly impossible in the field of cryptocurrencies. The precise reason being, that many of the Blockchain projects are initiated for the sole reason of raising a huge amount of funds, through Initial Coin Offering and betraying the investors at the end. The investor, as well as newbies, must be very careful and maintain a safe distance from such projects. For the development of loopholes and inefficiencies, a number of hard forks are initiated for various Blockchains. The Bitcoin protocol is the only cryptocurrency project which has the highest number of forks. Bitcoin Gold, Bitcoin Private, Bitcoin Diamond, Bitcoin Cash, etc are some of the most prominent Bitcoin forks until now. Bitcoin Cash is the only authentic one.
What is Bitcoin Diamond? Why is it labeled as a scam?
Nevertheless, Bitcoin Diamond is one of the most popular hard forks for its controversies in the cryptoverse. Initiated in November 2017, Bitcoin Diamond was one of the 20 hard forks which were undertaken in 2017. The main intention behind the inception of this hard work, by two of the developers, was to improve the incapabilities of the Bitcoin protocol. During its initial days, it was widely accepted by the community members, and was also listed on, over 33 cryptocurrency exchanges and supported by at least 6 Crypto wallets. But due to shed loads of reasons, it became one of the most controversial ones. Below are some of them.
- The first and the foremost reason for the speculations catching fire was only when they realized the anonymous nature of the developers. Strong voices were raised against Bitcoin diamond. This indirectly led to its denouncement from most of the popular Crypto exchanges and wallets.
- It’s interesting 1:10 parity, was one of the most cited reasons for the controversies around it. The total supply of the Bitcoin Diamond is 210 million tokens. Therefore, each Bitcoin holder would be able to avail 10 times more Bitcoin diamond. This quality was also doubted by the community members.
- Even the Social Media presence of the Bitcoin Diamond team members is very vague. The official Twitter handler was registered only in November 2017, the same month in which Bitcoin Diamond was initiated. Interestingly, there is a link available on the Bitcoin Diamond’s official website, which is a phishing link and does not lead to any Slack account of the community. Ironically, even its Telegram channel was prominently observed to be used for naive jokes and not for any sort of serious discussions. The official website along with its Telegram channel was also registered, in November itself, that too anonymously.
- It is also witnessed that there is no source code made available to the people, in any form of open source codes. As a direct consequence of which, the Trezor along with Ledger Nano S hardware wallets do not support Bitcoin Diamond. On its official website, one can also find murky wallets and they have mentioned it as “Waltets”.
- The developers have been unacknowledged and have themselves designated pseudonyms as “007″ and “Evey”. This has been done in a very similar fashion, to that of the original Bitcoin creator, Satoshi Nakamoto.
- There exists no blockchain or the source code and therefore we can certainly designate Bitcoin Diamond to be a fraud.
The bullish attitude of Bitcoin Diamond despite the criticisms
Regardless of all the criticisms against the Bitcoin Diamond project, the Bitcoin Diamond tokens are actively being used by many crypto investors even to this date. Despite the irregularities and negligence of the developers, towards the project which can be observed through the quality of their website, Bitcoin Diamond is widely being incorporated by all.
Precautionary measures to stay away from such projects
One must not get blown away by the attractive incentives and the short-term instant gratification. Online search is one of the best methods, where the users can trace its reliability, by searching the project name along with the keywords such as scam or fraud. If any payment methods are used, make sure that it incorporates the credit card facility, as they inherently have fraud prevention methodologies. Other methods like Western Union, PayPal, etc are lesser reliable where the funds cannot be redeemed back with a cake walk.