Should You Invest in Bitcoin
The Securities and Exchange Commission (SEC) recently issued an alert regarding investment in bitcoin. In the alert, the SEC stated that the increase in investments in bitcoin and other virtual and digital currencies creates new concerns. Investors in bitcoin are often promised high invetment returns but are often encountered with a high risk of fraud. The SEC suggested that potential investors consider risks when evaluating an investmetn involving bitcoin. Bitcoin is not insured and exchanges do not have insurance protections. Bitcoin is volotile where the exchange rate has dropped more than 50% in one day. Bitcoin is not legal tender and security at an exchange can be a problem. The SEC also warned investors that potential fraud may be prevalent and to look out for signs such as "Guaranteed" high investment returns and pressures to purchase immediately.
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