Post
Topic
Board Bitcoin Discussion
Re: 4 bitcoin risks you should know when investing in bitcoin
by
YuginKadoya
on 18/10/2019, 16:33:15 UTC
The value is not guaranteed, so buying and using Bitcoin carries a number of inherent risks. Many investor warnings have been issued by the US Securities and Exchange Commission (SEC), the Financial Sector Regulatory Authority (FINRA), the Department of Consumer Financial Protection (CFPB), and institutions. other officials

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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.

For example, in 2015, the New York State Department of Financial Services finalized regulations that would require companies to process purchases, sales, transfers, or store bitcoins to record customer identities. Transactions of $ 10,000 or more will have to be recorded and reported.
In addition, the lack of uniform regulations on Bitcoin and other cryptocurrencies raises questions about their lifetime, liquidity and popularity.

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.

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.

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

Security risks and fraud risk are related with almost everything online you can't just say that Cryptocurrencies are more prone to these risks. I think if compared to net banking and debit cards this is a much safer way because brute force hacking are almost impossible on bitcoin wallet because of their strong private keys. Also frauds overall can be protected by mere vigilance of the users otherwise this world is full of frauds at every point.

I totally agree and these can also be applied to fiat money and other commodities as well they can not blame Bitcoin for getting popular because of its volatility and that is another risk OP doesn't apply the risk for trading, I guess there are also gonna be a risk not only to bitcoin but other stuff when making business, making decisions as well not all system are perfect,

There are simply much risk in this world by just taking it down to Bitcoin yes investing can be risky and the time you will invest in bitcoin may become a risk as well but that is normal in my opinion like I said investing in something may always come with a risk.