Cryptocurrency is virtual currency and a hot trade item. However, there are some key points to consider when deciding to use or purchase cryptocurrencies such as Bitcoin.
1. Crytpocurrency and ransomware have become synonymous due to its anonymity. When a computer becomes infected with a ransomware such as Cryptowall, WannaCry, BadRabbit, etc, the cyber-criminal will advise one to purchase Bitcoin for payment of a key used to unencrypt their data. Whether the key is released or not, these criminals have been successful in scamming people out of money with no retribution for the victim.
2. There are no regulations on cryptocurrency as yet. As a result, the SEC has denied registration to cryptocurrency entities.
3. Cryptocurrency trades are not insured against fraud. This means if these companies go out of business their shareholders can’t get their money back.
4. Cryptocurrency isn’t backed by a bank or government.
5. Cryptocurrency is highly volatile. The value of money is usually fairly steady unless and until there are economic issues such as recession. The value of a single Bitcoin, on the other hand, has jumped radically over the past year leading many industry insiders to consider cryptocurrency trading the next bubble.
Given the unknowns and our experience via ransomware victims that we have serviced, it is our position that using or trading with cryptocurrency is risky and unsafe. Until regulations are in place and clear, we do not recommend use or trade.
For more information on cryptocurrency, please read the following articles:
3 Reasons Stash Investments Doesn’t Offer Bitcoin