Bitcoin, Crypto & Scams: What You Really Need to Know

By Molly Benjamin, Founder of Ladies Finance Club

Listen to the full podcast here.

If you’ve ever found yourself feeling confused or totally overwhelmed by the world of cryptocurrency, you are definitely not alone.

Bitcoin, Ethereum, blockchain, NFTs… it can feel like a digital jungle out there. And let’s be honest, for many of us, the jargon makes it all sound harder than it needs to be.

That’s why I wanted to sit down with tech entrepreneur Michael Hazilias, founder of Breakout Solutions, on this episode of Get Rich to break it all down and give you an easy-to-understand starting point.

Here’s what we covered: what Bitcoin really is, how crypto works, why it’s a space worth understanding and how to stay safe from scams (because unfortunately, there are plenty of those around).

And remember, this episode is for education only. We’re absolutely not giving financial advice. Always do your own research and speak to a licensed financial adviser before making any decisions.

What Is Cryptocurrency and How Does It Work?

Let’s start at the beginning.

At its core, cryptocurrency is a form of digital money. It allows people to send money to one another, without needing a bank or third party to process the transaction.

You can think of it like sending money online - fast, global, and peer-to-peer. The system runs on something called blockchain: a secure, transparent technology that records every transaction publicly.

That’s what makes blockchain powerful, the records can’t be tampered with, and they’re visible for anyone to see. No one person or organisation controls it.

Bitcoin vs. Crypto: What’s the Difference?

One of the biggest myths out there is that Bitcoin is crypto, or that all cryptocurrencies are basically the same thing.

Michael explained that Bitcoin is in its own category. It’s often described as “digital gold”. With a fixed supply, no central authority, and no team pulling the strings behind the scenes.

Other cryptocurrencies (like Ethereum, Solana, or Dogecoin) are part of a broader space. They can be built for different purposes, they work in different ways, and they don’t all carry the same level of decentralisation or security.

Bitcoin and Inflation

We also chatted about why some people see Bitcoin as a possible tool to hedge against inflation.

With rising inflation and concerns about the value of traditional currencies declining, Bitcoin’s fixed supply, there will only ever be 21 million Bitcoins — appeals to some people as a way to potentially preserve value over time.

But of course, this is a highly volatile space. Prices can swing dramatically. It’s something to learn about carefully, not a shortcut to guaranteed returns (there’s no such thing!).

Ethereum Explained

Ethereum is the second biggest name in crypto, but it serves a different purpose.

While Bitcoin is designed to act more like money or a store of value, Ethereum is like an “application platform” for building programs, apps and smart contracts on blockchain.

Michael explained that a good analogy is:
Bitcoin = PayPal.
Ethereum = the App Store.

Ethereum also runs on a different system called proof of stake, which uses less energy but comes with its own pros and cons.

Is Crypto Bad for the Environment?

This is a hot topic, and one that sparks plenty of debate.

Yes, Bitcoin mining uses energy but a growing proportion of that energy is coming from renewable sources (Michael shared a figure of around 70%).

There’s also an argument that Bitcoin mining is pushing innovation in renewables, as miners are incentivised to seek out cheaper (and cleaner) energy sources.

But this is still an evolving space so it’s important to stay informed and understand the bigger picture.

How Australians Are Approaching Crypto

Michael shared that in Australia, people use different methods to get involved with crypto, from buying on exchanges like CoinSpot or Coinstash, to using “micro-investing” apps like Bamboo.

One important distinction: with some apps, you’re only tracking the price of crypto, you don’t actually own the asset itself.

He also talked about storage. Hardware wallets vs. keeping crypto on an exchange and the importance of thinking about security and risk before getting started.

Again - this is not advice, just education! Always do your own research.

NFTs: More Than Just Art

You’ve probably heard about NFTs (Non-Fungible Tokens) and maybe assumed they’re just overpriced digital art.

But they can actually represent lots of things:
✅ Event tickets
✅ Memberships
✅ Proof of ownership (cars, property, digital identities)
✅ Digital subscriptions

Think of an NFT like a digital certificate: secure, transparent, and recorded on blockchain.

Crypto Scams: What to Watch Out For

Sadly, scams are everywhere in crypto and they’re getting more sophisticated.

Michael shared some common red flags:
🚩 Guaranteed returns (for example “10% monthly”)
🚩 Pressure to act urgently or send money quickly
🚩 Cold messages offering investment “opportunities”
🚩 Being asked to pay upfront fees or “taxes” to access your money

He also pointed out that one of the biggest reasons people lose money isn’t scams, it’s emotion. FOMO buying, panic selling, not having a plan... these can be wealth killers too.

Is It Too Late to Learn About Bitcoin?

Michael said this is the number one question he hears, and the answer is no, it’s not too late to learn.

Crypto is still evolving. Whether or not it’s something you want to explore is a personal decision but if you’re curious, learning is the best first step.

What About Regulation?

Crypto regulation is coming and that’s likely a good thing. It can help create more protections for consumers and bring more transparency to the space.

One area to watch is Central Bank Digital Currencies (CBDCs) government-issued digital currencies that will operate very differently to crypto like Bitcoin.

Crypto, especially Bitcoin, is a fascinating and fast-evolving space. But it’s not without risks, and it’s not a guaranteed path to wealth.

If you’re curious about it:
💥 Keep learning
💥 Stay sceptical of hype
💥 Understand the risks
💥 Never invest more than you can afford to lose

And most importantly, always seek professional advice before making any financial decisions.

Disclaimer: The information in this episode is for general education only. It is not intended as personal financial advice. Always seek advice from a licensed financial adviser before making any investment decisions.

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