ForexMinute.com – In times when Bitcoin is taking two-steps forward to reach mass adoption, a recent report from the Pennsylvania Department of Banking and Securities (PDBS) can single-handedly push the cryptocurrency four-steps back.
The anonymous report, compiled by the North American Securities Administrators, listed a number of investing mediums that they consider as the most threatening to investors throughout the next year. The mediums they highlighted are: Binary Options, Marijuana Industry Investments, Stream-of-Income Investments, Virtual Currency and Cyber Security Risks.
By exemplifying Bitcoin, the report directly warns investors about the risk associated with its volatility and demand for the units. It further speaks of the cyber risks associated with Bitcoin that can lead the investments to the verge of being stolen or lost. For obvious reasons, the report cites a case like Mt. Gox as the prime example of why Bitcoin must not be used for investments.
“We are living in an age where traditional financial and investing relationships are being transformed rapidly and sometimes in confusing fashion by technology and innovation,” said Glenn E. Moyer, Secretary of Banking and Securities. “It is especially important that investors fully understand where they are putting their money, and with whom they are investing it.”
Legal Criteria for a Safe Investment
One must focus on the criteria on which certain reports are made in the first place. PDBS might consider an investment safe if it is legal tender. Bitcoin, or any other cryptocurrency, are more of an independent solution to exchange or trade money as the form of payment. No government owns or controls it, making it an unsafe investment for the masses in the absence of a properly centralized body.
One other thing that ditches a safe investment criteria is Bitcoin’s inability to get refunded. Once a user completes a transaction, it cannot be reversed. Purchases can be refunded, but that depends solely on the willingness of the establishment to do so.
Bitcoin’s Role in Shaping Future Payments
Bitcoin was never launched as a vehicle to trade and make quick money in the first place. It was more about providing a medium via which two users can exchange money cheap, and without requiring any third party. The technology is the key factor why Bitcoin is booming in terms of both user and mass adoption. Indeed, the arrival of manipulating trading techniques are giving this entire sector a bad name. But the ultimate aim of Bitcoin is to create a free and decentralized payment ecosystem. Do not just use it for investment purposes, try creating a payment medium out of it.
To contact the reporter of the story: Yashu Gola at email@example.com