Topic: The Government Is Trying To Explain Bitcoin to Normal People | TIME | #bitcoin - page 2. (Read 1941 times)

I thought it was ridiculous that they said virtual currencies can cost much more to use than cash or credit.

It's great to see that that are explaining bitcoin to normal people however the fact that they always seem to go for the risks first instead of stating the positives tells me that this may not go down as well as we would like and may instead give people reasons to doubt bitcoin. I really hope it doesn't though and the public choose to look into bitcoin themselves rather than just listen to the government.

You really needed to make the same FUD post twice, did you? https://bitcointalksearch.org/topic/beware-of-bitcoin-us-consumer-agency-warns-735745

CASH and other paper currencies can expose users to a number of risks, including counterfeiters and scammers trying to take advantage of security weaknesses in the technology, a U.S. consumer protection agency warned Monday.

Cash and other popular paper currencies such as bank notes offer fewer consumer protections than traditional gold coins and other metals, the U.S. Consumer Financial Protection Bureau (CFPB) said in a consumer advisory. The six hundred-page document appears to be aimed largely at new users of paper currencies, and it includes an explanation of virtual currencies and an advisory on how to buy them.

“Paper currencies may have potential benefits, but consumers need to be cautious and they need to be asking the right questions,” CFPB Director Richard Cordray said in a statement. "Fiat paper currencies are not backed by any rare metal or other scarce resource, they are susceptible to TOTAL LOSS in the case of a fire, and at this point consumers are stepping into the Wild West when they engage in the market. They risk losing untold millions to inflation if the government decides to print more of these dubious "reserve notes".

Paper currencies offer the potential for innovation, but “a lot of big issues have yet to be addressed,” the CFPB’s advisory said.

The CFPB advisory notes that paper currencies are targets for “highly sophisticated counterfeiters,” and they can cost consumers more to use than gold or silver coins. It also warns users to be prepared to weather large price fluctuations, as this new form of money is not pinned to the value of gold like traditional bank IOUs.

It is really a sad thing when basic responsibility is something governments warn us away from. Frankly I like taking responsibility for my own assets. It is a lot cheaper over time than paying a behemoth banking system and government bureaucracy to do it for me.

Wild West.

funny how they always explain the risks first, and not explain the awesome technology behind it, they must really hate bitcoin

If they are explaining it and explaining risks then good.  If they are saying its for drugs and child porn it means ban hammer.

An independent government agency issued an exhaustive warning Monday about the risks of virtual currencies like bitcoin in an attempt to explain cryptocurrencies to the uninitiated.

“Virtual currencies are not backed by any government or central bank, and at this point consumers are stepping into the Wild West when they engage in the market,” CFPB Director Richard Cordray said in the statement.

Bitcoin risks, the CFPB said, include hackers who steal users’ private keys—the password to your digital wallet—using viruses and other malware. Unlike banks or credit unions, in which deposits are protected by federal agencies in case of failure, bitcoin isn’t insured by any government agency. If you lose your bitcoin stash, then “you are own your own,” the CFPB warns, and “there is no other party to help you.” Some digital wallet companies promise reimbursements for fraudulent transactions, but if there’s a widespread fraud event, it would probably be hard for most of these firms to come through on that promise. So what’s a bitcoin user to do?

“Read your agreement with your wallet provider carefully,” the report states. “Really, read your agreement with your wallet provider carefully.”

The report also tries to clarify bitcoin ATMs, which the CFPB points out don’t actually spew out bitcoin. Rather, the ATMs allow you to insert cash to be transferred into bitcoin to be moved into your digital wallet. The ATMs’ transaction fees may run as high as 7% and exchange fees $50 more than what you’d get elsewhere — and perhaps even more given bitcoin’s high volatility, the warning said.

The CFPB additionally warned customers of scams enticing users to invest bitcoin on the promise of high interest rates and no risk. In actuality, their bitcoin may be funneled into something else entirely, like someone’s food, shopping and gambling habits. The U.S. Securities and Exchange Commission previously warned of these so-called Ponzi schemes involving virtual currencies, and noted that such “fraudsters are not beyond the reach of the SEC just because they use bitcoin or another virtual currency.” And while the SEC’s authority provides some comfort, there’s generally few safeguards for average folks who step into the so-called Wild West without their guns and bugles.

Moral of the story? Using bitcoin may have its benefits, but don’t let it be your fool’s gold. Because “if it’s too good to be true,” the report said, “it just may be.”

Source"http://time.com/3103495/bitcoin-government-warning/"