Legal risks
Bitcoin can be used for black market transactions, money laundering, illegal activity or tax evasion. Therefore, governments can seek to regulate and regulate the use or trading of bitcoin.
How black market used to function before 2009? WHy to bind this risk only with cryptos?
Security risks
As with any system, Bicoin transactions are at risk of being hacked, malware and malfunctioning during operation. If a hacker gains access to the Bitcoin owner's computer hard drive and steals the private key, he can transfer the stolen Bitcoin to another account.
A particularly notorious theft took place in 2014, when Mt. Gox, a Bitcoin exchange in Japan, was forced to shut down after Bitcoin worth millions of dollars was stolen.
Applies to Banking sector as well! Read the references below,
5 most scandalous fraud cases of 2018:
https://www.fraud-magazine.com/2018Top5Frauds/5 Recent Banking Frauds In India:
http://www.businessworld.in/quickbytes/5-Recent-Banking-Frauds-In-India/15-02-2018-316/ANALYSIS OF TOP 100 BANK FRAUDS:
http://www.cvc.nic.in/sites/default/files/new1111.pdfI can go on and on. But the above links prove my point!
Fraud risks
Because the issuance of cryptocurrencies, ICOs etc. has not been regulated by the government yet, scammers can sell fake bitcoin. For example, in July 2013, the SEC took legal action against a Ponzi program operator related to Bitcoin.
Look at the above list! But yes, ICOs are indeed a real risk for crypto owners but only if they are not aware about the market. Those who are aware of the market, usually stays away from such frauds!
Tax risks
In March 2014, the IRS announced that all cryptocurrencies, including Bitcoin, would be taxed as an asset. Therefore, there is no legal way to protect Bitcoin earnings from taxes
Why do you want to evade tax? At least it has got the legal status in USA. In many other countries, the legal framework of bitcoin/cryptos are still confusing. It is better to be regulated than to be criminalize!