Topic: 4 bitcoin risks you should know when investing in bitcoin - page 2. (Read 502 times)
in my opinion the 4 risks mentioned by the OP are also common in fiat money. I think in any investment there is a risk and we cannot avoid it. in fiat money money laundering also occurs then fiat money can also be hacked We often hear many fraudsters who hack fiat money through ATM cards. fraud is also always there in fiat money usually fraudsters commit fraud under the guise of investment. if both bitcoin and fiat have the same risk it is better to choose bitcoin in investing because bitcoin has fluctuations that can give us the opportunity to buy low and sell high.
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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.
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.
This is some serious bullshit. Nobody can sell you fake bitcoin! There is no fake bitcoin. The only thing they can sell you is a promise of bitcoin or a promise of bitcoin gains if you send them your bitcoins. A ponzi scheme is not selling fake bitcoins! You seriously don't know much about this and repeat some headlines found in the web.
First thing Bitcoin is a bit complex to understand common person who is not belonging to the tech world. But still money matters, and every human being on this planet better know the value of money. This is the first reason why most normal people turns towards Bitcoin considering tool for investment. Just because of false advertising.
The second thing wrong promotion through MLM, and network schemes. Many fall in the trap just because of greed. People who invest in such cases never get returns back because of the specification of Bitcoins principles.
Third thing very few people used Bitcoin as a platform for investment which is actually indeed.
The last thing is about security, Bitcoin is completely virtual asset so, anyone can deal with it electronically. While accessing bitcoin keep your focus on security majors.
It's funny that the article points out about legal risks but if you will analyze the real situation. There are many people that are doing those activities with the use of fiat money. They can't even distinguish that for some matters and they'll pass it on to bitcoin. Yes, bitcoin has been used with those before but it's adoption and is becoming globally accepted very soon.
This is some serious bullshit. Nobody can sell you fake bitcoin! There is no fake bitcoin.
The article don't understand the true situation of the market, I guess this is a research based article but lacks of many things. Quote
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.
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.
This is some serious bullshit. Nobody can sell you fake bitcoin! There is no fake bitcoin. The only thing they can sell you is a promise of bitcoin or a promise of bitcoin gains if you send them your bitcoins. A ponzi scheme is not selling fake bitcoins! You seriously don't know much about this and repeat some headlines found in the web.
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.
Same as fiat. FUD as usual.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.
Oh, as if "hackers" never got into Banks online, or never phished people's passwords from their own computers, ever...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.
Obviously Ponzi, the Italian, had to use Bitcoin, not USD, all the way back in the early 20ieth century, no one ever faked USD banknotes, no reason whatsoever they changed all the banknotes when they introduced the colored ones, it was just for cosmetic reasons alone...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
Hmm lets say you travel, and buy some property cheap. Some years later, you travel again and sell it, all that profit goes into a bank of that country, you return. IRS? Nope. Well Bitcoin is similar, nothing occurs physically in your country, if you ever declare something, its voluntary, because you are a nice law abiding citizen. 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
Taxes from bitcoin earning depends on countries because there are some countries where it's not regulated and are set very strange fees which are out from standard and are especially suited for cryptocurrencies or are even just hang on.
What legal risks do you talk about? Well, if we consider what India plans, then yes, no one knows if any government follows India's plan (which was to ban usage of bitcoin and cryptocurrencies and set even jail on it).
What do you mean when saying scammers can sell fake bitcoins? How can anyone ever fake bitcoin? It's cryptocurrency, something that exists online and isn't physical gold which you can fake a little bit.
In overall the only risks here exist when you hold this coin, otherwise as a payment method, it's just great thing and can't see any risk here. Even if legal risks may exist, you will have some time to fix everything, nothing happens in one day, there is always some date (usually one month) given to fix everything.
What legal risks do you talk about? Well, if we consider what India plans, then yes, no one knows if any government follows India's plan (which was to ban usage of bitcoin and cryptocurrencies and set even jail on it).
What do you mean when saying scammers can sell fake bitcoins? How can anyone ever fake bitcoin? It's cryptocurrency, something that exists online and isn't physical gold which you can fake a little bit.
In overall the only risks here exist when you hold this coin, otherwise as a payment method, it's just great thing and can't see any risk here. Even if legal risks may exist, you will have some time to fix everything, nothing happens in one day, there is always some date (usually one month) given to fix everything.
Nothing is world is purely good. Bitcoin has also the same case. It has many risks. Some of which are as follows:
1) If you forgot your key, you will lose all your money in the wallet and can't access them.
2) Although it is secure, somebody may hack your account and take all your money and you can't do anything.
3) Its value is variable. It may fall by a higher rate.
4) You may be cheated by someone.
1) If you forgot your key, you will lose all your money in the wallet and can't access them.
2) Although it is secure, somebody may hack your account and take all your money and you can't do anything.
3) Its value is variable. It may fall by a higher rate.
4) You may be cheated by someone.
Risk is always around in the corner, it is up to the person who wants to invest in crypto currency. They should have to do more research when investing something in order to minimize the risk. Scammers are getting better everyday for making a trap to scam more people but if you are knowledgeable enough, you are unlikely to get scam.
Since this risk warning came from SEC, FINRA, and CFPB, this is biased and prejudiced against Bitcoin or crypto.
Why don't they do the same to fiat?
Legal risks
Billions and billions of fiat have been used for black market transactions, money laundering, illegal activity and tax evasion.
Security risks
Fiat has been stolen, used in illegal activities, assigned whimsical value, printed out of thin air and indiscriminately, and so on and so forth.
Fraud risks
Fiat, even if directly owned and regulated by the government, is always faked. I'm not sure if there is one original left.
Tax risks
Fiat is taxed too heavily in all transactions.
#ChooseBitcoin
This is very true! Moreover, these points don't strike me as the most important ones when it comes to investments. Yes, you have to take into consideration the legislation you have in your country that is related to Bitcoin. Yes, you have to make sure you're actually buying Bitcoin rather than something else, and that you are doing it on an exchange with a good reputation. You also have to ensure that your coins are kept in a safe place. But IMO the biggest risk with Bitcoin is that it's very volatile, so you can easily lose money, and it can happen very fast. Why don't they do the same to fiat?
Legal risks
Billions and billions of fiat have been used for black market transactions, money laundering, illegal activity and tax evasion.
Security risks
Fiat has been stolen, used in illegal activities, assigned whimsical value, printed out of thin air and indiscriminately, and so on and so forth.
Fraud risks
Fiat, even if directly owned and regulated by the government, is always faked. I'm not sure if there is one original left.
Tax risks
Fiat is taxed too heavily in all transactions.
#ChooseBitcoin
Risk is part of the system especially in cryptocurrency but if you do have some knowledge and experience you can somehow minimize the risk. Bitcoin is a promising coin indeed but it still risky to place an investment without having knowledge regards to this coin. Besides, crypto is full of risk hence you should be aware of it. Risk is inevitable,its either we face it or run from it we choose but remember if you stay on your comfort zone then you wouldn't get the reward of the risk-takers.
People already know what awaits them when they enter the crypto world, if they do not know then it is a serious problem they have. If anyone hears about something decentralized created by an anonymous internet guy, then that person must already imagine that it has nothing to do with governments and that person must know that they will face the fury of governments. And you also forgot to mention the high volatility of cryptos
Don't this risk you listed above applies to fiat as well? Except for legal risk because as it is btc those not have government approval worldwide,
When you talk security risk that also happens with bank accounts and what have you, many people have had their bank account comprised and money is been stolen, the security level their is not exactly first class,
Fraud and Tax risk also applies in fiat, infact, more common with fiat than crypto, the government tax you for almost everything, directly or indirectly, you are paying tax,
Fraud is another story on its own so no need to go deep, bottomline is btc is no different than fiat when it comes to those risk you mentioned above.
When you talk security risk that also happens with bank accounts and what have you, many people have had their bank account comprised and money is been stolen, the security level their is not exactly first class,
Fraud and Tax risk also applies in fiat, infact, more common with fiat than crypto, the government tax you for almost everything, directly or indirectly, you are paying tax,
Fraud is another story on its own so no need to go deep, bottomline is btc is no different than fiat when it comes to those risk you mentioned above.
I agree with you. All of these risks can happen when it comes to fiat money too. Perhaps due to the fact that Bitcoin is much less common than fiat, we are reacting these risks so sharply, but in fact, risks exist both in case of using fiat and Bitcoin equally
Very informative thread. For newbies who do not understand cryptocurrency, this is a good reference. This information can also be found on many other platforms, but only here we can discuss it more deeply and provide related information to each other.
By understanding these risks, we can prepare prevention so that these risks can be avoided and their impact reduced. Like security risks and fraud, this can be reduced by giving double security to the wallet and wiser in using the internet, not to become a way for hackers.
There is one more risk that must be understood: volatile risk.
This is often feared by ordinary people, even though it can be used to take profit if you can analyze a chart optimally. So the timing for buy and sell is at the optimal position.
By understanding these risks, we can prepare prevention so that these risks can be avoided and their impact reduced. Like security risks and fraud, this can be reduced by giving double security to the wallet and wiser in using the internet, not to become a way for hackers.
There is one more risk that must be understood: volatile risk.
This is often feared by ordinary people, even though it can be used to take profit if you can analyze a chart optimally. So the timing for buy and sell is at the optimal position.
Don't this risk you listed above applies to fiat as well? Except for legal risk because as it is btc those not have government approval worldwide,
When you talk security risk that also happens with bank accounts and what have you, many people have had their bank account comprised and money is been stolen, the security level their is not exactly first class,
Fraud and Tax risk also applies in fiat, infact, more common with fiat than crypto, the government tax you for almost everything, directly or indirectly, you are paying tax,
Fraud is another story on its own so no need to go deep, bottomline is btc is no different than fiat when it comes to those risk you mentioned above.
When you talk security risk that also happens with bank accounts and what have you, many people have had their bank account comprised and money is been stolen, the security level their is not exactly first class,
Fraud and Tax risk also applies in fiat, infact, more common with fiat than crypto, the government tax you for almost everything, directly or indirectly, you are paying tax,
Fraud is another story on its own so no need to go deep, bottomline is btc is no different than fiat when it comes to those risk you mentioned above.
I certainly agree with you. All these risks are also happening to fiat so we can't take these things against Bitcoin only. Even fiat is being used in fraud, money laundering and even in black market transactions. Why don't you look at the brighter side and the advantages of Bitcoin for you to see the real differences? Bitcoin has it's a risk but investors and traders still choose it because of the profit that we could gain here which we couldn't gain in fiat.
You must learn to understand first before investing in bitcoin and know the risks and systems for how it works, even though bitcoin is a promising and profitable investment if you don't study it well, everything will be in vain.
bitcoin is very volatile where prices can change significantly and you must understand when you make a purchase and when you resell it at the right time.
and bitcoin is not regulated by the government or third parties so you will have problems with the law, and other problems.
bitcoin is very volatile where prices can change significantly and you must understand when you make a purchase and when you resell it at the right time.
and bitcoin is not regulated by the government or third parties so you will have problems with the law, and other problems.
Just like what I always mention, bitcoin has always a counterpart of risk. When you start using and engaged with cryptocurrency, you should know the risk factors it have, and we should always be prepared for it. There's a lot of risk here in crypto, but why do we still invest in bitcoin knowing it's very risky? 'Cause we won't risk in the very first place if it's not worth risking. It means, investing in bitcoin is also worth it. We just have to embrace the risks in crypto for us to know how to manage and handle it very well.
everything we do there is a risk of living in the world alone we have risks let alone we work in cryptocurrency certainly has big risks like we invest in bitcoin especially if we are beginners in cryptocurrency, but investors who have long known about cryptocurrency risks in investing with bitcoin is a matter makes sense because they can avoid the risk of investing in bitcoin maybe they already have a lot of experience with it.
Since this risk warning came from SEC, FINRA, and CFPB, this is biased and prejudiced against Bitcoin or crypto.
Why don't they do the same to fiat?
Legal risks
Billions and billions of fiat have been used for black market transactions, money laundering, illegal activity and tax evasion.
Security risks
Fiat has been stolen, used in illegal activities, assigned whimsical value, printed out of thin air and indiscriminately, and so on and so forth.
Fraud risks
Fiat, even if directly owned and regulated by the government, is always faked. I'm not sure if there is one original left.
Tax risks
Fiat is taxed too heavily in all transactions.
#ChooseBitcoin
Why don't they do the same to fiat?
Legal risks
Billions and billions of fiat have been used for black market transactions, money laundering, illegal activity and tax evasion.
Security risks
Fiat has been stolen, used in illegal activities, assigned whimsical value, printed out of thin air and indiscriminately, and so on and so forth.
Fraud risks
Fiat, even if directly owned and regulated by the government, is always faked. I'm not sure if there is one original left.
Tax risks
Fiat is taxed too heavily in all transactions.
#ChooseBitcoin
I dont think that those are really risk. Let us say legal risk, this is not a risk. Is a legal compliance a risk I will say no, for an ordinary individual that has nothing to do with illegal and illicit activities theres no such thing as legal risk. Another thing is security risk, I guess on this thing you have a point since hackers are everywhere and may access your account. Fraud risk, this is not a risk at all since it all depends on yourself if you will allow yourself to be scammed, this is the same with fiat currency if you allow yourself to be scammed then you lose your money. Tax risk: I dont hear this one maybe in the USA but in other parts of the world cryptocurrency is not taxable.
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