Bitcoin, introduced in 2009 as the first ‘known’ cryptocurrency, has established its place in the market as one of the biggest cryptos. One unit of Bitcoin, which started at a few dollars, costs over $7,000 per Bitcoin.
According to a company statement, the Bitcoin Growth Fund, a blockchain-based startup fund, was able to raise around $2.5 million as a part of its initial coin offering.
However, many are not aware of the blockchain-based startup and its functioning.
What is Bitcoin Growth Fund? Is it a Fraud?
Bitcoin Growth Fund is a blockchain-based company that started in November 2016 that allows its users to invest in a startup using Bitcoins. One can invest as low as 1 BTC in a startup using the Bitcoin Growth Fund.
However, the terms of the functioning of the Bitcoin Growth Fund often raise questions amongst individuals.
- How is it possible to invest so low?
- What do they need the funding for?
- Is it a scam?
When a user invests using Bitcoin Growth Fund, he/she buys Mcaps tokens in return, which are then invested in multiple cryptocurrency mining.
Bitcoin Growth Fund & the uncanny ‘Mcaps’ fib
The ‘Mcaps’ token, though, does not hold any virtual value. The strategy behind the ‘Mcaps’ system, however, is quite suspicious.
Many users complained that the price of ‘Mcaps’ didn’t fluctuate despite various fluctuations in the Bitcoin and Etherium pricing, the difference going as high as a few hundred dollars.
Here are some examples that explain the uncanny ‘Mcaps’ fib.
Neeraj Gupta, while answering a question on Quora expressed his disappointment in the Bitcoin Growth Fund, saying, “In past few days, Bitcoin value has increased from 2500$ to 3700$ , Ether value has increased by 50% but MCAP value is still the same around $2 on CryptoCurrency Market Capitalizations (Dont go by BGF as its the compnies own platform which can easily be manipulated)” (1)
Other users expressed how the scam started by Amit Bhardwaj has been successful in scamming others via its previous company, GainBitcoin.com.
Another user stated his concern regarding the ‘Mcaps’ fib started by Bitcoin Growth Fund, which forces its users to buy Mcap tokens at $5, only to resell it at 67 cents back to them if you want to buy Bitcoins. (2)
Note: Bitcoin Growth Fund has not shown any signs of activity on the web since 2017.
Overall, though the Bitcoin Growth Fund started out with a clean chit, it has grown to become another part of a Ponzi scheme that aims at scamming cryptocurrency newbies by luring them into their scam trap.