This comes from a post in 2014 about bitcoin. I like going and looking at what happened and what people were saying. What's interesting in this article is that in Mt. Gox caused bitcoin to drop back then too. Please see link below for full story.
In a warning last week to investors, Joseph Borg, director of the Alabama Securities Commission said, “The risk of using Bitcoin may be off the charts! When using Bitcoin for investing, it is difficult to seek any protection or recourse for losses due to fraudulent schemes.” Echoing other regulators, here’s a rundown of Borg’s specific concerns with Bitcoin:
● It’s a high-risk commodity because of the volatility in its price.
● It’s not backed by any central banks worldwide and has no tangible value.
● It’s an experimental concept.
●It’s unregulated and does not provide protection for consumers.
● Consumer disclosure rules and regulations are limited or nonexistent.
Joe Rotunda, director of the enforcement division for the Texas State Securities Board and a member of NASAA’s enforcement section, is the association’s point person on Bitcoin. He’s concerned that some people, hoping to strike it rich by investing in the next big technological advance, will overlook the risk in this new payment form.
Consider its volatility. Rotunda points out that a bitcoin was valued at less than $14 in January 2013 and jumped to $1,200 in November 2013. Most recently it dropped to about $400 after the news about Mt. Gox.
“My biggest concern about Bitcoin is that it’s trendy and there’s a lot of buzz about it,” he said in an interview. “But you can’t get caught up in the buzz and trendiness of it and lose sight of the inherent risk. This is the type of risk that can wipe out someone’s retirement account in a matter of minutes. That’s the flip side of this coin.”
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https://www.washingtonpost.com/business/investing-in-bitcoin-has-a-dangerous-flip-side/2014/02/28/09af7f54-9e5e-11e3-9ba6-800d1192d08b_story.html
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