A few days ago investors hoping to cash in and take advantage of the Bitcoin craze swarmed as the cryptocurrency’s price surged up to $8,000.
Because of the trend, yesterday, it zoomed up to $10,000. Although this might be a good news to some, the chair of the House banks and financial intermediaries committee warned the Filipinos about the risks of Bitcoin, this Wednesday according to Inquirer.
Ben Evardone, Eastern Samar Rep., warned the Filipinos not to be quick in parting with their hard-earned cash in the hopes of making money quick.
“They said it is very risky, speculative and [has] no safeguards,”
Evardone shared this caution at the hearing of the committee on banks and financial intermediaries last Tuesday. He also added that the Filipinos might be tempted to put all their money in it “without realizing that they could lose everything in one drastic plunge.”
The Bangko Sentral ng Pilipinas and the Securities and Exchange Commission, along with all the representatives from the banking sector “were one in advising the public against investing in bitcoin or any other virtual currency.”
“Cryptocurrencies like bitcoin are a promising low-cost remittance platform for Filipino workers sending their earnings home but they are extremely risky investments due to lack of regulatory protection for consumers,”
Electronic currencies such as bitcoins are not regulated and backed up by banks, that it the reason why it surged up to that amount. It also has no tangible value that can guarantee safety for the investors.
“Investors stand to lose everything overnight if exchange platforms for cryptocurrencies shut down or when the consumer’s virtual wallet containing confidential information is hacked or stolen,”
He cited the infamous Mt. Gox case where $460 million worth of bitcoins got lost in Japan in the biggest cryptocurrency hacking incident.
“Until enough safeguards are put in place, investors would be well-advised to heed the admonitions of the Bangko Sentral and the Securities and Exchange Commission to put their money in safer investments,”