FRIGHTENING FACTS ABOUT BITCOIN
FACTS ABOUT BITCOIN
Bitcoins are stored in digital wallets. Are they secure? Not
so much. Over 600 reported thefts have already occurred, including one heist
of 50,000 Bitcoins. (That’s equal to about $45 million at current prices.) Same
goes for Bitcoin exchanges. They’ve already been hacked, too. Heck, there’s no
guarantee that an eWallet service won’t one day close shop and disappear with
all of your Bitcoins. Still interested in converting your life savings into the cryp
tocurrency? Read on...
Not So Anonymous After All:
Bitcoin enthusiasts love to tout the fact
that Bitcoins can be exchanged outside of the prying eyes of, well, everyone.
Of course, such anonymity opens up the door for illicit activities. Seeing that
leading Bitcoin exchange CEO, Charlie Shrem, just got busted by the U.S.
Department of Justice for money laundering, it appears that Bitcoin isn’t so
anonymous after all. It also confirms that Bitcoin is, indeed, tied to criminals.
Welcome Pretty Much Nowhere:
you can’t really use Bitcoins to purchase everyday goods and services. For the
most part, owners hoard their stashes. So what’s the point? Outside of being a
speculative investment, that remains a mystery.
No Inherent Value:
Bitcoins are nothing but a bunch of ones and zeros.
There’s nothing standing behind the value except other Bitcoin investors. No
governments pledging their full faith and credit. No national banks. No eco
nomic unions. Nothing. Sounds more like a bit-
than a system we can trust.
Far From Irreplaceable:
In addition to lacking trust, we have no guarantee
that Bitcoin won’t be replaced. I mean, what’s going to stop a better Bitcoin
from coming onto the scene? Speaking of which, at least five “altcoins” have al
ready popped up, each trying to address a Bitcoin shortcoming. Seeing so much
competition this early on points to a major problem with the original. Don’t you
Of course, if you choose not to heed my stern warning about Bitcoin’s riskiness, listen
to Gavin Andresen, a lead developer on the Bitcoin Project. He readily admits, “Bitcoin
is an experiment... Treat it like you would a promising internet startup company: Maybe
it will change the world, but realize that investing your money or time in new ideas is
always risky.” No, thanks! Bitcoin is too risky to even bother