A few days ago, some juniors were chatting that bitcoin to touch 30000$ ish high returns getting huge applause from the crowd who seems to have no idea of currency but were only like, its free investment chance no risk etc.They day they were talking bitcoin took its first hit probably due to Bitcash.I am not here to bash anyone, As a guy with some good knowledge of These digital currencies, I am about to tell some huge risks and flaws relating to these hugely trending Crypto-based currencies with a weird mechanism for a normal person.If you have some extra cash or want to invest or trade in these currencies you should be aware of following :
- Everyone is interested: Due to Ripple, Bitcoin etc rising so high everyone is interested people are even taking mortgages to invest in bitcoin, servers are overloaded and high transaction costs are being charged.
- At the moment it is not taxed which makes it suspicious authorities in different countries around the world are cracking down and banning bitcoin trades.You might get into trouble with Authorities.
- Transaction costs just look at this guys tweet.Sometimes these might be worst on your wallet
- Since these Currencies are trending and hot topic everyone seems to be launching their Crypto tokens (ICO) many spammers and frauds are also present who advertise crazy returns and attracts normal persons from Social media sources and simply rob them out of their savings and investment.Beware of them.
- Here are some issues related to E-wallets were these currencies are being stored online and offline .offline storage might be suitable but online storage is vulnerable to hacking recently a bitcoin Slovenian based wallet was hacked and crypto-currency worth 75 million Usd was lost.