8 Common Bitcoin Scams Bitcoin is a type of cryptocurrency or digital currency in which units are generated via encryption techniques. It’s a type of peer-to-peer transfer called mining. It’s not backed by the government or any regulatory body. It’s ripe for scams since there is no real regulation on it, and in some people’s mind bitcoin is a huge scam in and of itself. But, if you want to get involved with the cryptocurrency trend, be aware of these common bitcoin scams.