What is Bitcoin Bam (BTCBAM)?
Bitcoin launched in 2009 and has since spawned a large number of forks as the source code for it is open source. None of these forks have amounted to much of interest – Bitcoin has always remained the dominant cryptocurrency.
That has not stopped developers from forking Bitcoin and attempting to overtake the largest cryptocurrency. These Bitcoin forks typically arise after Bitcoin developers have a disagreement over some technical issue and the parties decide to split up.
Bitcoin Bam is a little different, though. This is not a true fork as they launched the token on the Binance Smart Chain, which is already a little dubious in our opinion.
Anyway, this article will cover everything you need to know about Bitcoin Bam.
What is Bitcoin Bam?
Bitcoin Bam is a cryptocurrency on the Binance Smart Chain. The project has a stated goal of launching a smart contract compatible Bitcoin blockchain. The consensus mechanism, however, will be a mutualized proof of stake.
The whitepaper goes into very little detail about mutualized proof of stake, but it appears that the block reward is equally shared between the ten previous miners (10% to every miner). The paper states that the remaining 90% of the block reward is distributed after 500 blocks, which we do not understand. What is the remaining 90%? Do they mean the 90% to the previous 9 miners?
Anyway, this is done to increase the cost of “junk contract” attacks. We are not aware of what a “junk contract” is nor do we know if mutualized proof of stake can prevent it.
The whitepaper author might be referring to spam contract attacks, like the one launched on Ethereum in 2017, but spam contract attacks are not done to gain block rewards. Unless they are referring to someone creating fake transactions in order to gain a block reward, but that should not be an issue on a blockchain that has people actually using it.
The rest of the whitepaper goes into detail about how the project plans on being a sort of bridge between Ethereum and Bitcoin. It also mentions that Spektral Bank has a 25% ownership share in Bitcoin Bam.
The next section will cover some of the issues we have with Bitcoin Bam.
The Problems with Bitcoin Bam
We have a lot of problems with Bitcoin Bam. There are so many red flags with this project its hard to find anything redeeming about it. Here are some of the red flags that we see.
The first problem we have with this project is that it has anonymous founders. We find this particularly strange because the project has allegedly received investment from a major investment bank.
Investment banks typically do not invest in brand new crypto startups that have anonymous founders.
This leads us to believe that the investment from Spektral is not true, Spektral does not actually exist, or that Spektral knows the identity of the founders and will not release it.
No matter what the truth is it is still very odd that a project like this would have anonymous founders.
Spektral Investment Bank
The biggest red flag about this project, in our opinion, is their ties to Spektral Investment Bank. The bank allegedly owns 25% of the project. However, we cannot find any sources about this investment other than press releases on websites that allow anyone to release a press release if they pay money for it.
In other words, someone is paying money to tell people that this investment bank invested in the project.
These articles also state that Bitcoin Bam is a mining company that allows anyone to mine cryptocurrency, which is definitely not what the whitepaper says the company is about.
Is the Bitcoin Bam project on Binance Smart Chain simply stealing the name from another project? Is the project a fraud? What exactly is going on here?
Unfortunately, we do not have the answers, but it all seems very suspicious.
The Whitepaper is Horrible
Bitcoin Bam’s whitepaper is not the worst whitepaper we have ever seen. It’s still not a great whitepaper, though. It’s full of grammatical errors, which is a somewhat minor problem.
The bigger problem is that the whitepaper does not go into much technical detail about what this project actually does. It explains some things in a very surface level way, but it is mostly just throwing around buzzwords.
If you compare the whitepaper to the Bitcoin or Ethereum whitepaper, then you will see a remarkable difference in quality between the two.
A vague whitepaper like the one Bitcoin Bam has is a red flag in our opinion.
Launching on BSC
Another issue we have with Bitcoin Bam is that the project launched on the Binance Smart Chain. That really does not make much sense.
They use the name “Bitcoin” in their project and then launch on the Binance Smart Chain. Ethereum launched on its own blockchain and raised funds with Bitcoin – users could send Bitcoin to an address and receive Ether on the blockchain.
Every major Bitcoin fork has launched their own blockchain from launch. A project launching on Binance Smart Chain is strange.
The launch of Bitcoin Bam was delayed twice and then eventually never happened. When projects like this delay the launch it’s generally seen as a sign that the founders will rug.
At that point, most investors probably saw the delayed launch and knew the project never was going to launch.
With that in mind, we cannot call this a red flag that appeared before the launch of the project, but it was inevitable. A project with the name “Bitcoin” in it launching on BSC is almost always going to be a scam.
Is Bitcoin Bam (BTCBAM) a Good Investment?
No, BTCBAM is not a good investment. The project had a short period of time a few months ago when it received a large amount of hype and the price skyrocketed. But that quickly dissipated and the price has remained in the gutter ever since.
Just look at the price chart.
This is not the price chart of a cryptocurrency that is a good investment. A sharp rise in price followed by an incredibly sharp decline generally means the project died and the founders have abandoned it.
If the founders have not abandoned it, then the community has abandoned it. The lack of activity on the Bitcoin Bam Twitter account over the past few months is a good indicator that the founders have mostly abandoned the project.
To summarize, Bitcoin Bam is a project that received a large amount of attention around the beginning of 2022 and then completely failed to deliver on any of the promises made in the whitepaper. The project appears to have very little direction and the community has lost faith in the project.
This is not a project worthy of an investment in our opinion, but you should still do your own research to see if you find the investment suitable.