Bitcoin Forum

But probably the way those who support universal acceptance wanted!

http://www.coindesk.com/sec-warns-bitcoins-hype-may-put-investors-at-risk/

"SEC Warns Bitcoin’s Hype May Put Investors At Risk"

"The US Securities and Exchange Commission (SEC) has released a new alert, warning investors about the risk of fraud in the digital currency industry.

In its latest guidance, the SEC, a federal organisation tasked with enforcing US securities law, advised investors to be wary of promises of large returns on investments in bitcoin ventures and schemes:

    “A new product, technology, or innovation – such as bitcoin – has the potential to give rise both to frauds and high-risk investment opportunities.”

Lack of controls, oversight

According to the SEC, there are several warnings signs that investors should watch out for when considering investments in bitcoin ventures.

Specifically, it noted that investors should be wary of investment offers that come from unlicensed or unsolicited sources. Sales pitches that seem overly aggressive or that guarantee high returns, the released said, should be warning signs for every investor.

The SEC indicated that investors who generated significant earnings during bitcoin’s price boom in 2013 are particularly at risk of investment fraud. Additionally, participants in bitcoin forums like Bitcoin Talk face the risk of getting involved with fraudulent investments, such as an initial public offering (IPO) scheme.

The organisation also noted in the alert that the hype surrounding bitcoin may make it harder for investors to determine whether a particular investment opportunity is fraudulent:

    “Potential investors can be easily enticed with the promise of high returns in a new investment space and also may be less skeptical when assessing something novel, new and cutting-edge.”

Continued SEC scrutiny

The investor alert mirrors a report issued last year by the SEC, which explained the risk of Ponzi schemes involving digital currency. At the time, the SEC expressed concern that the rise in digital currency would lead to greater risks for investors because of a lack of regulatory guidance.

In recent months, the SEC has begun looking into potential fraud in the bitcoin marketplace as well.

The organization is reportedly investigating bitcoin websites. In March, the SEC began looking into the bitcoin securities exchange MPex and the gambling website SatoshiDice."

You wanted it.

Now you got it.

They scared.  Word.

Scared people are dangerous.

Fact.

Seems like they know are warning those interested in BTC of the risk of being scammed and at the same time generating a good bit of fear from potential investors.  I have a couple different opinions why they would do this.  You have to read in between the lines with this article, if you ask me.

Agreed!

However, this action is really about them figuring out how to control it.

FIXED!   :)

They dangerous. and they are everywhere!

Indeed :)

It is a fair warning. There are a heck of a lot of Bitcoin scams going on. If 'investors' need to be warned about promises of guaranteed high rewards, then they deserve to get ripped off as they're not really 'investors'.

I agree with you to some extent but that factor does not justify unwarranted intrusion by government.

Mean while they look they other way while people take on Interest only house loans  :D

The government is kind of intruding just about everywhere, not just Bitcoin. Nothing really justifies that.

It's funny how you don't see the same warning about Wall Street.  Even though that is a rigged market fleecing people all the time.  But Bitcoin is right on their radar lol, it really is humerus to me.

Fear can have unintended negative consequences for us
Let's by all means laugh at their ignorance, but stay vigilant and united

Oh I agree with that 100%.  That is their endgame at all times there is no doubt in my mind they are pulling their hair out trying to dissemble what Bitcoin has and will become.

Yes and it therefore behooves we, the supporters of Bitcoin to figure out ways around them.

It's a Brave New World out there boys and girls and it is up to us to defend it by whatever means possible.

We're still in the early stages of acceptance and adoption. Of course the SEC is going to slander it. Over the coming years we'll watch, and actively promote, the growth of Bitcoin (and perhaps an altcoin or two) as an actually currency (not a commodity).

It's going to be a fun ride.

It is too late to stop it. The network is to big and advanced for anyone to be able to stop it.

Fear is the weapon of last resort for the failing aristocracy.

Yes but you would be surprised what goernment can do when it sets it's ratbrain to it.

And they would be equally surprised what freedom minded people are capable of. The crypto ecosystem is protected in part by its innate ability to evolve. Government is slow and heavy handed. This technology is nimble and agile.

Those warnings has 2 sides to the Bitcoin community,
the good one - governments start to accept the virtual coins revolution.
the bad one - the flaws of the virtual coins revealed to the public and the in the public there are high percentage of those who like to read only the bad news.. without the need of the solutions for most of the problems that refers by a governmental documents..

Seems balanced to me? They are not saying anything against bitcoin or it's use. It is just warning that there are scammers trying to use the confusion people have to take advantage of them. Beware when investing your bitcoin. That's good advice.

Yeah, right.

Now I wanna see a big article put out by the same people about the use of the US dollar in scamming.