It’s been a while since we’ve heard about investor/consumer alerts on bitcoin, so why not start our Friday off with one from the State of Missouri’sSecretary of State?
Jason Kander is throwing warning signs at investors who may just have an interest in putting their money into digital currencies.
“With digital currency or any other emerging investment opportunity, the safest approach is to be cautious,” he said in his statement. “It’s important to recognize that in many cases not even the supposed Bitcoin and digital currency experts know enough about the product to help you make a fully informed investment decision. It’s best to rely on only the most reputable sources of information and do your own due diligence before investing in potentially risky products.”
You really can’t blame him for warning citizens. With the popularity of bitcoin and other digital currencies rising, you could say it’s Mr. Kander’s job to do exactly what he did.
“Investments that are sold as a way to make a quick profit can also lead to a quick loss. I encourage Missourians to be wary of any investments that promise an unusually quick return.”
The Secretary’s statement goes on to warn of other concerns that come into play when investing in digital currencies.
[blockquote style=”2″]They include the possibility of users getting hacked or falling victim to a fake Bitcoin exchange. The risks are especially pronounced because Bitcoin payments are irreversible. Once a transaction is completed, it cannot be undone. Users can—and have—lost substantial amounts of real money.[/blockquote]
Missouri isn’t the first state to issue a warning on bitcoin. Massachusetts recently released a warning of their own, and there’s likely more to come.