The world is in a bit of a frenzy these days about bitcoin.
It’s the most valuable asset in the world and it’s the first digital currency.
It’s also the world’s most volatile.
We spoke to people in the bitcoin space and they’re not impressed by it.
“It’s the biggest scam I’ve ever seen,” says Paul Hsieh, the founder of BitPay.
BitPay uses bitcoin to process transactions.
The payment processor doesn’t control the bitcoin itself but has the right to determine the value of it, as well as how much it’s worth.
Hsieh says: “When you’re dealing with bitcoin, the transaction itself has a lot of value, but it also has a whole lot of risk.
If you’re not careful you could end up with millions of dollars.”
Bitcoin has its own risks.
In the past, some bitcoiners have been accused of fraud.
In 2014, a US federal judge ruled against two former bitcoin users in a lawsuit against the company, claiming the company’s actions made the bitcoins “virtually worthless”.
In November, another federal judge found the company liable for breach of contract.
Bitcoin is a relatively new form of payment.
Bitcoin’s first transaction was conducted by a woman named Victoria Caspersen in 2014.
Her friend, Daniel Vetter, also went to the ATM.
The couple exchanged $400 for a bitcoin that had been held in a wallet they called a “bitcoin address”.
It had no account number and had never been used in any way by anyone other than the two people who exchanged it.
Victoria Caffersons account was used to purchase the bitcoin.
Vetter later filed a claim with the Federal Trade Commission alleging he had been defrauded.
Vetter lost his lawsuit.
He was able to use a new version of bitcoin called a proof of stake coin to buy the bitcoin and a new address, one with his name on it, to buy another bitcoin from the same bank.
Vetters account was frozen for seven months.
He sued the company in March, claiming he had lost millions in fees, lost income, and lost control of his money.
Vetteers claim is still pending.
In a court filing in November, the US Securities and Exchange Commission (SEC) claimed the company engaged in “fraud and misrepresentation”.
The SEC also accused the company of “malicious conduct”, but said the claim had not yet been substantiated.
Victoria Caffersen told us: “I was just so naive.
I thought it was going to be something fun.
I didn’t know that it would turn into this big deal.”
The next day, Victoria Cattons account would be frozen again.
A week later, the SEC announced it was shutting down all accounts of Victoria Cappers account and her friend Daniel Vettters account.
Two months later, Daniel sued the firm in court, alleging that Victoria Cespers account had been stolen, and that he had suffered losses, losses he believed were attributable to fraud.
Victoria’s friend and former partner, Daniel is suing the company again, this time alleging fraud.
The SEC is investigating, and it says it may seek to shut down the company.
At first, Victoria thought the company was going away.
“It was a fun little game,” she says.
But in December, she told the media that the company would still exist and continue to operate, although it would be more restricted.
She said: “There are going to a lot more lawsuits, a lot worse things, so I don’t really know what’s going to happen, what’s really going to go down.”
In February, she sold her home, moving to California with her three children.
Her life has been turned upside down.
Daniel Vetter says: “”It’s been really hard.
I’m living a nightmare, a nightmare.
“I don’t think it’s going away and I don