Risks of bitcoin

The risks involved with bitcoin include the following:

• Volatility in investments. Bitcoin does not have a long-term track record or history of credibility behind it. Prices rise and fall quickly, and well-known individuals such as Elon Musk have brought the value up almost 10% and caused it to decline by 5%, just by sending out tweets. In 2014, in one day, the price dropped by 80%.
• No insurance. Bitcoin exchanges and wallets are not insured by federal or government programs. Unlike bank accounts, if something happens, it is unlikely that individuals will get their bitcoin back.
• Suspect to ransomware. Because transactions are made digitally and anonymously, bitcoin is the currency of choice when hackers hold an unsuspecting victim’s data ransom.
• Regulatory restrictions. Bitcoin has also been used for black market transactions, which may invite government regulation to restrict it.