The lack of security has raised concerns about the risk of owning these virtual currencies as hackers continue to breach the exchanges, forcing one bitcoin exchange in South Korea, You bit, to file for bankruptcy in 2017.
The uncertainty emphasizes the hazards investors face daily in their attempt to profit from bitcoin, ether and other cryptocurrencies. The debate on whether bitcoin is actually a currency or an investment continues as the Securities and Exchange Commission considers it a security, the IRS treats it as property and the Financial Crimes Enforcement Network says bitcoin is a currency. "As cryptocurrencies like bitcoin and ethereum become more popular and more valuable, the services that support the buying, selling and trading of these currencies will increasingly be targeted."