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Bitcoin investment risks
Bitcoin is the first digital currency launched in 2009 by Satoshi Nakamoto. According to what was reported by many online media, that Satoshi Nakamoto is a Japanese national. On the other hand, the name is just a pseudonym used by the developer of the Bitcoin. Want to know more about Bitcoin? What is Bitcoin?
At this time Bitcoin is no stranger to all net citizens. Many large investors are present to invest in it, so the price of Bitcoin has risen sharply in the last two years. But Bitcoin investment has a big risk.
Among these risks is 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.
Risks we can conclude at this time:
Legal risk
Bitcoin can be used for black market transactions, money laundering, illegal activities or tax evasion. Therefore, the government can try to regulate and regulate the use or trade of bitcoin.
For example, in 2015, the New York State Department of Financial Services completed regulations that would require companies to process bitcoin purchases, sales, transfers or deposits to record customer identities. Transactions of $ 10,000 or more must be recorded and reported.
In addition, the lack of uniform regulations regarding Bitcoin and other cryptocurrency raises questions about their lifetime, liquidity, and popularity.
Security risk
Like any system, Bitcoin transactions risk being hacked, malware and malfunctions during operations. If a hacker gets access to the hard drive of a Bitcoin owner's computer and steals a private key, he can transfer the stolen Bitcoins to another account.
A very famous theft occurred in 2014, when Mt. Gox, a Bitcoin exchange in Japan, was forced to close after millions of dollars worth of Bitcoin was stolen.
Risk of fraud
Because publishing cryptocurrency, ICO, etc. Not regulated by the government, scammers can sell fake bitcoin. For example, in July 2013, the SEC took legal action against the Ponzi program operator associated with Bitcoin.
Tax risk
In March 2014, the IRS announced that all cryptocurrency, including Bitcoin, would be taxed as an asset. Therefore, there is no legal way to protect Bitcoin income from taxes