CROMWELL, Conn. (WTNH) – The Better Business Bureau wants Connecticut residents to be aware of the risks involved in using the virtual currency known as Bitcoin.
Bitcoin is a digital form of money that is not controlled or backed by any central government or central bank. This digital money can be bought or sold through virtual currency exchanges and used to purchase goods or services. The paperless currency’s value fluctuates wildly, making it dangerous for merchants who accept it, as well as consumers who purchase bitcoins as an investment.
Some common concerns and issues you should consider when approached with potential investment opportunities:
Virtual currency is subject to minimal regulation, susceptible to cyber-attacks and there may be no recourse should the virtual currency disappear.
Virtual currency accounts are not insured by the Federal Deposit Insurance Corporation (FDIC), which insures bank deposits up to $250,000.
Investments tied to virtual currency may be unsuitable for most investors due to their volatility.
Investors in virtual currency will be highly reliant upon unregulated companies that may lack appropriate internal controls and may be more susceptible to fraud and theft than regulated financial institutions.
Investors will have to