FINRA Issues Investor Alert on Bitcoin
The Financial Industry Regulatory Authority (FINRA) has issued an investor alert for Bitcoin Bitcoin While some may still be wondering what is Bitcoin, who created Bitcoin, or how does Bitcoin work, one thing is certain: Bitcoin has changed the world.No one can remain indifferent to this revolutionary, decentralized, digital asset nor to its blockchain technology.In fact, we’ve gone a long way ever since a Florida resident Laszlo Hanyecz made BTC’s first official commercial transaction with a real company by trading 10,000 Bitcoins for 2 pizzas at his local Papa John’s.One could now argue that While some may still be wondering what is Bitcoin, who created Bitcoin, or how does Bitcoin work, one thing is certain: Bitcoin has changed the world.No one can remain indifferent to this revolutionary, decentralized, digital asset nor to its blockchain technology.In fact, we’ve gone a long way ever since a Florida resident Laszlo Hanyecz made BTC’s first official commercial transaction with a real company by trading 10,000 Bitcoins for 2 pizzas at his local Papa John’s.One could now argue that Read this Term, saying that digital currency is "more than a bit risky".
The warning for the most part echoes those of other authorities and governments around the world, highlighting the following risks: speculation and Volatility Volatility In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Traders In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Traders Read this Term, hacking, fraud, theft, no deposit insurance, irreversibility, illegal activity and scams.
One point which stands out for its poignancy, but also paints a vivid economical picture of Bitcoin, was noted in the beginning of the "Risks" section:
"Digital currency such as Bitcoin is not legal tender. No law requires companies or individuals to accept bitcoins as a form of payment. Instead, Bitcoin use is limited to businesses and individuals that are willing to accept bitcoins. If no one accepts bitcoins, bitcoins will become worthless."
The warning comes as a bit o a surprise, considering the U.S.'s hitherto relatively open stance toward Bitcoin, with Ben Bernanke saying that the cryptocurrency "may hold long-term promise".
For Bitcoiners, the silver lining may come from the warning's apparent openness to dealing with issues:
"If you believe you've been defrauded or treated unfairly by a securities professional or firm, file a complaint. If you suspect that someone you know has been taken in by a scam, send a tip."
This contrasts sharply with warnings from other countries such as Japan, which until recently, essentially turned their backs on cryptocurrency and implying that would be victims are on their own.
Bitcoin prices have not reacted much to the news, continuing to hover around $625 on Bitstamp.
The Financial Industry Regulatory Authority (FINRA) has issued an investor alert for Bitcoin Bitcoin While some may still be wondering what is Bitcoin, who created Bitcoin, or how does Bitcoin work, one thing is certain: Bitcoin has changed the world.No one can remain indifferent to this revolutionary, decentralized, digital asset nor to its blockchain technology.In fact, we’ve gone a long way ever since a Florida resident Laszlo Hanyecz made BTC’s first official commercial transaction with a real company by trading 10,000 Bitcoins for 2 pizzas at his local Papa John’s.One could now argue that While some may still be wondering what is Bitcoin, who created Bitcoin, or how does Bitcoin work, one thing is certain: Bitcoin has changed the world.No one can remain indifferent to this revolutionary, decentralized, digital asset nor to its blockchain technology.In fact, we’ve gone a long way ever since a Florida resident Laszlo Hanyecz made BTC’s first official commercial transaction with a real company by trading 10,000 Bitcoins for 2 pizzas at his local Papa John’s.One could now argue that Read this Term, saying that digital currency is "more than a bit risky".
The warning for the most part echoes those of other authorities and governments around the world, highlighting the following risks: speculation and Volatility Volatility In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Traders In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Traders Read this Term, hacking, fraud, theft, no deposit insurance, irreversibility, illegal activity and scams.
One point which stands out for its poignancy, but also paints a vivid economical picture of Bitcoin, was noted in the beginning of the "Risks" section:
"Digital currency such as Bitcoin is not legal tender. No law requires companies or individuals to accept bitcoins as a form of payment. Instead, Bitcoin use is limited to businesses and individuals that are willing to accept bitcoins. If no one accepts bitcoins, bitcoins will become worthless."
The warning comes as a bit o a surprise, considering the U.S.'s hitherto relatively open stance toward Bitcoin, with Ben Bernanke saying that the cryptocurrency "may hold long-term promise".
For Bitcoiners, the silver lining may come from the warning's apparent openness to dealing with issues:
"If you believe you've been defrauded or treated unfairly by a securities professional or firm, file a complaint. If you suspect that someone you know has been taken in by a scam, send a tip."
This contrasts sharply with warnings from other countries such as Japan, which until recently, essentially turned their backs on cryptocurrency and implying that would be victims are on their own.
Bitcoin prices have not reacted much to the news, continuing to hover around $625 on Bitstamp.