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Europe Warns of Bitcoin Dangers

Dec 13 (Time) — A European financial watchdog will issue a stern warning Friday about the risks associated with unregulated Internet currencies like Bitcoin.

The European Banking Authority statement will highlight the “violent fluctuations in [the value of] electronic currencies,” the danger that digital wallets may be hacked, and the lack of legal protections for users, the Financial Times reports. The value of Bitcoin has fluctuated wildly in recent months, swinging between $340 and $1240 this week alone.

The move comes after the People’s Bank of China ruled this month that Chinese banks will not process or insure Bitcoin transactions. Many financial investors have been enthusiastic about the usefulness of the stateless, digital currency, which can cut down on transaction fees and facilitate anonymous financial transactions online, but regulators fret over the ease with which Bitcoin, and other digital currencies, can be used for money laundering and other criminal activity. The online illegal drug marketplace Silk Road, which was briefly shut down by authorities after the arrest of its founder, operated entirely on Bitcoin.

SOURCE

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  • Bobbbo

    Propaganda Article. It did not fluctuate between 300+ and 1200+ I dropped from 1200 and settled at 850.

  • Pap74

    too true bobbo i have too been watching it closely .. and it never dropped lower than 800 .. scare mongers .. all the media are .. only tell u what u wanna hear .. do ur own research .. dont believe everything the media tell ya

  • Mineu

    “The value of Bitcoin has fluctuated wildly in recent months, swinging between $340 and $1240 this week alone.” -> what is the source? It looks like total misleading information

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