On Bitcoin Pizza Day, Beware of Affinity Scams: Crypto Is Not Bitcoin

Date Published
May 22, 2024
Written by
Jaime Garcia
Reviewed by

As Bitcoin continues its bull run and gains recognition and adoption, it's crucial to address a growing concern in the Bitcoin space: affinity scams. These scams leverage Bitcoin's trust and reputation to lure in unsuspecting individuals, promising the same credibility and security. However, cryptocurrencies like Ethereum, Dogecoin, and numerous altcoins are not the harmless, fun tokens they often appear to be. They represent an insidious attempt to co-opt Bitcoin's excellent reputation, often resulting in financial loss for those who fall for their marketing schemes.

Bitcoin stands out due to its decentralized nature, limited supply, and robust security. It's a digital asset with a clear purpose and vision. In stark contrast, many altcoins and related projects lack the same foundational principles. Instead, they ride on Bitcoin’s coattails, presenting themselves as equally viable or even superior investments. This is not just misleading; it’s a calculated affinity scam.

Take, for example, a recent initiative by a cryptocurrency company called PizzaDAO. This company has organized a worldwide pizza party funded by money raised through selling Non-Fungible Tokens (NFTs). On the surface, this might seem like a fun and engaging community event. However, it's a deliberate attempt to exploit the enthusiasm of Bitcoin Pizza Day on May 22, which commemorates the historic 2010 transaction where Laszlo Hanyecz spent 10,000 Bitcoins for two pizzas. This day has become a legendary celebration within the Bitcoin community, symbolizing the early adoption and real-world use of Bitcoin.

PizzaDAO aims to associate its altcoin and NFT sales with the authentic Bitcoin culture by co-opting this significant event. For example, the crypto project doesn’t even accept Bitcoin as a payment method. You can only use Ether (ETH) to purchase one of their Rare Pizza NFTs. This tactic is not new; many cryptocurrency projects attempt to piggyback on Bitcoin’s success and credibility. However, it’s essential to recognize these schemes for what they are: scams designed to cash in on the trust and enthusiasm of genuine Bitcoiners and normies who are curious and want to get into the space.

Making money in the Bitcoin industry is challenging. Bitcoiners typically have a low time preference, prioritizing long-term benefits over short-term gains. This translates into high standards for products and services they are willing to invest in. Additionally, in a free and efficient market, profit margins are naturally low. Meanwhile, individuals peddling altcoins and NFTs often become wealthy by selling worthless tokens to uninformed investors. These "fiat games" enrich scammers at the expense of honest participants.

When a new project emerges claiming to uphold Bitcoin’s ideals while simultaneously engaging in token scams, it feels like an attack on the very principles Bitcoiners cherish. It's frustrating for those of us who refuse to participate in these deceitful practices. Even more disheartening is seeing former Bitcoiners and now leaders within the crypto community who should know better, choose to ignore the truth for their own gain.

We all understand the difference between right and wrong. Deceiving people into buying worthless assets is undeniably wrong. Scams can exist in free markets, and while the government shouldn’t necessarily intervene with force, that doesn’t absolve scammers of the consequences of their actions. A shared belief in limiting government power does not justify exploiting others.

In the words of Rudyard Kipling, "If you can bear to hear the truth you've spoken twisted by knaves to make a trap for fools." This quote encapsulates the frustration of seeing Bitcoin’s ideals twisted to ensnare the unsuspecting. The quote further highlights how the actions of dishonest or manipulative crypto projects are taking Bitcoin Pizza Day, entirely out of context, distorting its meaning, and using it against the people who buy into their scam.

The main takeaway is clear: Do not get distracted by these affinity scams. Bitcoiners and those curious about the space must stay vigilant and avoid falling prey to deceptive marketing schemes. Focus on Bitcoin, understand its long-term value, and maintain a low-time preference. This approach will safeguard your investments and uphold the integrity of the Bitcoin community. Stay informed, stay cautious, and, most importantly, stay true to the principles that make Bitcoin unique.

Need Bitcoin Support?

Take your learning experience to the next level and speak directly with one of our thought leaders. CoinBeast Connect allows you to ask all of your questions and consult a professional on a variety of topics such as mining, security, compliance, taxes, payments, Lightning and much more. Whether you’re an entrepreneur building a crypto startup, an investor exploring custody options or a member of the energy sector interested in mining bitcoin, we can connect you with the right specialist.

Let's Connect

Sign up for more

Stay curious. Bitcoin education featuring blogs, learning tools and reviews to help you navigate down the rabbit hole.

Jaime Garcia

Latest Articles