CFPB Says Bitcoin Is ‘Wild West’ of Finance World – Yahoo Finance
Consumer Financial Protection Bureau outlined several of bitcoins potential dangers, including vulnerability to hackers, limited security, excessive costs and scams. It also announced a system that accepts virtual currency complaints . Though virtual currencies have become increasingly integrated into society, with states , companies , political organizations and even schools approving their use, the Internal Revenue Service has not granted it legal tender status in any U.S. jurisdiction. Virtual currencies are not backed by any government or central bank, and at this point consumers are stepping into the Wild West when they engage in the market, CFPB Director Richard Cordray said in the statement. Bitcoin risks, the CFPB said, include hackers who steal users private keys the password to your digital walletusing viruses and other malware. Unlike banks or credit unions, in which deposits are protected by federal agencies in case of failure, bitcoin isnt insured by any government agency.
Why Bitcoin’s Growth Should Explode – Yahoo Finance
Please enter your Phone Number. Send Thanks! A link has been sent. Done CFPB Says Bitcoin Is Wild West of Finance World By Krystal Steinmetz 14 minutes ago 0 shares Done You may enjoy watching movies about the Wild West, where lawlessness reigned. When it comes to your money, it might not be a good idea to invest it in virtual currency, recently dubbed the Wild West of the financial world. The Consumer Financial Protection Bureau has issued a consumer advisory warning consumers about the risks of cryptocurrencies like bitcoins.
WASHINGTON: Digital currencies such as bitcoin carry significant risks, feds warn | Economy | McClatchy DC
According to a new report, a spike in searches for Bitcoins can be a good predictor of an imminent crash in its value. By studying the web activity and social media chatter generated by Bitcoins, a group of Swiss computer scientists have come to the conclusion that four key variables govern the way the virtual currency behaves. First is the size of the user base; second is the number of searches for information; third is the amount of information shared; fourth is the price.
The signs it’s time to pull out of Bitcoin investment
When useful services roll out, bitcoin adoption should soar because it costs nothing for users to engage and close to nothing for platforms to become part of the ecosystem. But when will this happen? Useful services are currently being tested: remittances, tipping and notary services. As soon as one of those services (or something like them) becomes a best-in-class solution, bitcoin growth should explode to dominate that market.
Markups and transaction fees for digital funds such as bitcoin, XRP and Dogecoin can cost consumers more than using credit cards or regular cash, and the companies that issue digital currencies arent backed or insured by any government, according to the six-page alert from the Consumer Financial Protection Bureau, a federal watchdog agency. The advisory also cautions consumers that digital currencies can experience huge price fluctuations due to speculation and the lack of regulation. Bitcoins price has fallen by as much as 80 percent in a single day. Consumers who use or invest in virtual currencies are stepping into the Wild West, the bureaus director, Richard Cordray, said in a statement. Virtual currencies may have potential benefits, but consumers need to be cautious and they need to be asking the right questions, Cordray said. In addition to issuing the advisory, the bureau announced Monday that it will start collecting consumers complaints about virtual currencies on its website, http://www.consumerfinance.gov.