Wednesday, 20 December 2017

RISK OF BITCOINS

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BITCOIN RISKS..

Bitcoin is a virtual currency. but the currency is still infancy because no one knows Bitcoin is real? (or) not! .. Many of the people not believing in Virtual currency because its is eventually dissappear by this problem Bitcoin future is reflected in the volatility of price.And no shares have been issued to one who bought the bitcoin.

SEVERAL TYPES OF RISKS INVOLVED IN BITCOIN:
Regulatory Risk
Security Risk
Insurance Risk
Fraud Risk
Market Risk
Tax Risk

REGULATORY RISK:

                   Bitcoins became against to the government because as they are using for black market transactions and some of illegal activities. by this government may ban the Bitcoin or stop the usage of Bitcoin and to stop the sale of Bitcoins.and so many Rules have to come up to stop the Bitcoin.According to the (Financial Services Law Sections) that can able to to deal with the buy, sale, transfer and storage of Bitcoins to record the identity of customers.The transactions will be reported by them.

SECURITY RISK:

                      Bitcoin transactions are become the digital and virtual system and as they are risk from hackers and some the malware viruses causes effect them.if  a hacker enters and access to the Bitcoins user computer drive and able to steal the encryption key.Then he able to stole the bitcoins and transfer the bitcoin money to other ones. and there’s a way to protect the bitcoin is from the bitcoins have to stored in a computer drive which is not connected to the internet.
private keys and the info of the bitcoins have to be downloaded not to upload in the computer drive.and in 2014 an incident happens in japan that Bitcoins are stolen. when the Bitcoins are exchanging .more than millions of dollars worth of Bitcoins have been stolen.

INSURANCE RISK:
                       
                       May be some of the investments are insured from the corporation .they can handle upto limited amount depending upon the order by them. and Bitcoin are not insured and guaranteed by the government.

FRAUD RISK:

                  Many of them are try to sell the false Bitcoins  because the Bitcoins use the separate encryption key to verify its owner of the Bitcoin and their transactions. In the year of 2013 a legal action taken against the Bitcoin scheme.

MARKET RISK:

                      Bitcoin values and price fluctuates day by day. As the price increases more sometime and may decreases some time.Many of them are try to buy the Bitcoin and selling and exchanges through the Bitcoin as the in the year of 2013,The Bitcoin price suddenly fells upto 61% and the same as the next year it fells upto 80%.so there much loss in the market value.

TAX RISK:

                     By gaining money from the Bitcoin. we have to pay taxes for it. And it depends upon the income that you earned from the Bitcoin if we gains the Bitcoin in trading it will be traded as the business income and there are no legal options to protect the investment from the tax..
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