If mainstream media were to be believed, Bitcoin is only used by criminals and scammers on the Internet. Unfortunately, there is a small truth to that story, as there are various people looking to scam unknowing Bitcoin users. A new thread has surfaced on Reddit, explaining how various platform users have – allegedly – been scammed for thousands of dollars.

Also read: Malware Attack Against Point-of-sale System Displays Need for Bitcoin Adoption

The Allegations Made Against Reddit User Irishfight

It is important to keep in mind these are allegations made by another Reddit user, and everything should be taken with a grain of salt. Naming and shaming on the Reddit platform are nothing new, and not all of these claims are founded. However, there seem to be several pieces of evidence corroborating this story.

Hiring someone on the Internet to complete a job or task is always risky business, as you never know whether or not the other person is legitimate. Building a reputation in the online world is a critical element to attract additional business opportunities, and Reddit user Irishfight had some positive testimonials to his name.

As you might expect in this day and age, the person being hired will more often than not require a down payment to be made before starting the work. After all, anyone can claim they have the funds to hire someone, and never pay in the end. Taking this approach ensures both the “employer” is legit, which establishes a certain level of trust.

Unfortunately, there is a downside to this approach as well, as Bitcoin payments are non-refundable. Once the coins have been transferred to a different wallet, there is no way of getting them back, even if the deal goes sour. Irishfight decided to bank

As it turns out, this was not the first time the name Irishfight appeared on scam allegations, as he is – allegedly – the owner of the MoneyPakforBitcoins.com website. Needless to say, this service will not exchange MoneyPak for Bitcoin by any means, and it looks to be a site luring unsuspecting people in.

But there is more, as the website MoneyPakForBitcoins.com has been the subject of multiple scam allegations on Reddit and Google. Unfortunately, it’s rather easy to get away with these things in the Bitcoin world, as the currency is not controlled – nor protected-  by any authority in the world.

Building Trust Is Hard

Creating a reputation is a difficult hurdle to overcome, let alone to build any trust relationship in the world of Bitcoin and digital currency. This is where blockchain technology-based platforms will have to step up their game, as smart contracts provide an excellent opportunity to remove any trust factor from the equation.

Additionally, smart contracts ensure employer funds are kept safe until the hired person completes the agreed upon job. Ethereum’s blockchain is perfectly tailored to create these smart contracts, and it will only be a matter of time until smart contracts become the new norm in the way we do business all around the world.

What are your thoughts on the allegations made against Irishfight? Do you think smart contracts could have prevented this scenario? Let us know in the comments below!

Source: Reddit

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