Bitcoin is becoming more popular in Papua New Guinea

This article explains, in simple terms, the dark side of Bitcoin. Scams and Fake Promises One of the biggest dangers with Bitcoin is scams.

Bitcoin is becoming increasingly popular in Papua New Guinea, with many people now having heard of it and some already using it to send and receive money, invest, save and hold for future use.

It sounds like a smart way to make money and for some, it has been. However, for others, it’s a better digital savings account. But there’s another side to Bitcoin that many don’t talk about. It’s very important for ordinary Papua New Guineans to understand the risks and dangers before getting involved.

This article explains, in simple terms, the dark side of Bitcoin.

Scams and Fake Promises

One of the biggest dangers with Bitcoin is scams. Many people in PNG have already lost money by trusting fake Bitcoin investment schemes.

You might see people on Facebook, Telegram or WhatsApp promising to double your money in one week. Some may show screenshots of big profits or say a “pastor” or “businessman” is involved. Be careful! Most of these are scams.

These scammers trick people into sending their Bitcoin or Kina with the promise of high returns but once they get your money, they disappear. Bitcoin transactions cannot be reversed. Once it’s sent, it’s gone.

Price Goes Up and Down Quickly

Bitcoin is not like a normal bank account. The price of one Bitcoin can go up very high and also fall very low — sometimes in just a few hours or days.

For example, in 2021, one Bitcoin was worth over USD $60,000 (K180,000). By the next year (2022), it dropped to below USD $20,000 (K60,000).

That’s more than half its value lost.

If you put money into Bitcoin when the price is high and it crashes, you can lose a lot of money. This has already happened to many people around the world.

No One Can Help You If Something Goes Wrong

In PNG, if you lose your Kina Bank card or your bank account with BSP is hacked, you can go to the bank for help. But with Bitcoin, there is no help desk, no bank, no officer and no refund.

If you lose your password (called a private key and a recovery phrase), you lose access to your Bitcoin forever. If someone hacks your phone or tricks you, there’s no one to report to. Even the police or your Govt may not be able to help, because Bitcoin is not controlled by any government or bank.

Used for Criminal Activities

Bitcoin is sometimes used for illegal activities. Because it can hide the identity of users, it’s been used to move dirty money, fund crimes and even support online black markets.

This is a serious issue because in some countries, police and governments are cracking down on Bitcoin users — especially if they are suspected of being involved in criminal or suspicious activities.

PNG citizens must be careful not to get caught up in any illegal Bitcoin activities, even by accident. You could face legal problems without even knowing what you’ve done.

Central Bank Sends Warning

The Bank of Papua New Guinea (BPNG) has served some warnings about people involved in Bitcoin scams. These warnings are because of the above list of reasons and Bitcoin’s dark side.

If you lose money or someone scams you, you cannot go to the central bank, the Ombudsman, the police or the courts to get your money back. You are on your own.

The government and central bank have also warned that using Bitcoin comes with big risks. It’s not yet regulated and people using it are doing so at their own risk.

Fake Bitcoin “Experts” and Influencers

These days, you’ll hear some people calling themselves Bitcoin “experts” or “gurus.” They hold seminars or online meetings and try to convince people to invest through them.

Some are honest and trying to teach others but many are just trying to make money for themselves. They collect “joining fees,” or sell fake “training packages,” and walk away rich while others lose out.

One example of this is CashFX or CFX. In 2019 and 2020, many people from PNG joined CFX, excited with the promise of high returns. I was involved in selling Bitcoin to those who wanted to join CFX. Some people withdraw until in 2022, it started to slow down on processing withdrawals and eventually stopped withdraw in 2023 and now it’s dead – not working any more. I was selling Bitcoin that time, people bought Bitcoin and joined CFX. I also lost in CFX.

CFX was a Ponzi Scheme. It was an experience that we look out for such and avoid. Other red flag scams in PNG are: Golden Sun, SSE, Faith G and any others that promise high returns.

Always check the background of anyone offering Bitcoin advice. Real experts don’t