Bitcoin Forum

There are five risks in the use of Bitcoin:

• The risk of Policy
  From a macroeconomic perspective, due to the “constant total amount” of Bitcoin, its circulation will be accompanied by the flow of goods and services, which has a small transmission effect on inflation. Adding the weight of Bitcoin to the world currency can weaken the transmission effect of monetary policy.
  
  1) Bitcoin breaks the central bank's monopoly on currency issuance. Due to its technological complexity, innovation and global nature, it is difficult for the central bank to monopolize its issuance rights.
  
  2) Cash in circulation or deposits in the banking system may be replaced by Bitcoin, which will have an impact on the base currency and currency multiplier; in addition, the existence of Bitcoin has an impact on the speed of currency circulation and its price level.
  
  3) The global nature of Bitcoin obscures the national boundaries that restrict the use of currency, and it is difficult for a country's monetary policy to isolate the influence of other countries' economies and policies.
   
  The central bank will introduce policies from various aspects to suppress Bitcoin, so as not to affect its monetary policy.
  
  
• The risk of the law
  
  In August 2013, Germany announced the recognition of the legal status of Bitcoin and it has been included in the national regulatory system. Germany is the first country in the world to recognize the legal status of Bitcoin.
  In May 2016, Japan approved the digital currency regulation bill for the first time and defined it as property.
  On June 9, 2021, the El Salvadoran government passed a bill to make Bitcoin a legal tender here. From September 7th, it will become the country's legal tender. El Salvador will become the first country in the world to use Bitcoin as a legal tender.
  
  At present, Bitcoin is only protected by the laws of various countries as a virtual commodity rather than a currency.
  
  Only a few countries recognize this status of Bitcoin and do not support it as a major currency.
  
  In cross-border Bitcoin infringement cases, because countries have different legislations on Bitcoin and have different characterizations of Bitcoin, the resolution of related disputes involving Bitcoin is relatively lagging.
  

• The risk of Speculation
  Bitcoin does not have national credit or physical assets as protection, and the price may fluctuate sharply, which is extremely risky for investors. However, in my opinion, speculation is a high risk but also an opportunity, and it depends on the individual.
  
  
• The risk of  Money laundering
  Bitcoin has the characteristics of anonymity and freedom from geographical restrictions. The flow of funds is difficult to monitor, and it will be very easy to circumvent government supervision, making it easy for criminals to conceal the source and direction of their funds, which provides convenience for money laundering, terrorist financing and evasion of sanctions .
  
  They buy other people’s bitcoins through the exchange platform, and then bring the bitcoins to other platforms or their own wallets. Through multiple transfers, the tracking path is difficult or directly impossible to trace, and then through overseas trading platforms or black markets or directly Commodities purchased overseas are exchanged for foreign currency to complete a series of acts such as money laundering.
  

• The risk of Substitution

    Bitcoin still has shortcomings such as lack of credit guarantee, poor security performance, and easy to cause deflation. At the same time, it has to face the competition of various emerging altcoins, and there is a greater
   risk of substitution! Although I think this possibility is very small.

We can control these two risks ourselves. This is not all risks, you are right, but also opportunities. Investors can profit from it.

Thanks Kimberl for taking the time and effort to elaborate on "Risk analysis" that i suggested (https://bitcointalk.org/index.php?topic=5353429.msg57658494#msg57658494) you should write a different post about.

Any sort of Risk analysis is a pretty professional endeavor and you will find MBA graduates doing it for companies and products. The benefit of this forum is that we can crowd-source information and opinions. Still, it is important to recognize the sources from which we derive that information and give due credit to the ideas. Accordingly, it'll be great if you can elaborate on the sources from where the "Risks for Bitcoin" thought has been inspired (It could even be originally your own post, i just want to be sure).

Additionally, there is lot of factual information in this post. (Like the regulatory status of Bitcoin in Germany, Japan and the years when that happened). I request that you put some references there too.

I don't get what Risk of Policy though. From the post it seems you are talking about a lack of the traditional fiscal and monetary policy as well as there not being any governing body to implement the same. That is more like a feature of Bitcoin rather than risk.

About "Risk of substitution", I doubt that it is possible to create the same, genuinely cypherpunk  circumstances that lead to the initial community of brilliant OGs building up Bitcoin. Satoshi leaving behind a stack of One million untouched. Nick Szabo giving away 10,000 BTC to buy Pizza. I don't think the same natural and genuine community can ever form again now that cryptocurrency has become de-facto money. Do you imagine any of these "Teams and advisors" you see on seemingly genuine crypto projects would give away millions in the hope of adoption and education. I don't think so.

This is why, the risk of substitution does not seem a risk at all to me. Looking forward to your and others' opinion on this.

PS: You can always edit the OP to update the formatting or provide references and credit like i mentioned.

EDIT & PS: I would love to know more about the experience of having an actual outlet (https://bitcointalk.org/index.php?topic=5352765.msg57620376#msg57620376) where you tried crypto payments.

in my view, here the 3 risks very higher and even the government is not approving bitcoin because of these few cases government is worrying in money laundering will uncontrollable if it’s legal.

we users risks, using btc it’s the breaking of laws. the government has made provision for punishment here, especially in my country, new laws are being enacted to prevent its use.

The risk of advancements in technology to crack cryptography is probably another one. I don't know how severe that problem is and people say the algorithm could quickly be adapted, but if somebody cracks the algorithm I doubt that will ever become public knowledge until the harm done is really extraordinarily big. There are a couple of threads discussing the influence of quantum computing with pros and cons, but assuming that Bitcoin's algorithm might stay strong forever may also be naive to believe. [/list]

I think that some of these risks are a bit overblown, some are certainly true and some I don't think are as much risks as they are issues for governments.  I think the biggest risk for bitcoin, and other cryptocurrencies for that matter , is the risk of loss.  There are far too many people "in bitcoin" that have much of or most of their life savings inside it.  This is not the proper way to "invest" , or "store" bitcoin..you need a well rounded portfolio at all times.  To me, that is it's biggest risk.

If that does happen, crypto is probably the last that will get affected. The algorithm is used by others such as banking etc, and cracking crypto might not be as profitable as social engineering, doing ransomware, etc. Which is why most attack happens through spam e-mail, phishing link, etc.

The risk of security as you stated to me is overrated because bitcoin transaction is highly secured as long as the user has access to the wallet, the blockchain has the most secured security system which even the government can’t tamper with that is why the decentralized nature of bitcoin made bitcoin regulation by government impossible.

I think a lot of people are putting too much emphasis on the risks involved with governments and regulations. In most countries, governments are chosen by the people through a voting system. If you are lucky enough to live in one of these countries, then you have a say in what happens.

Use your vote and the votes of your family and friends to vote for a government that can bring change that favor Crypto currencies. The older generation will vote for "Fiat" based governments, because they accepted that as the norm. The younger generation wants change and they want more effective currencies and technologies... so go out and get the votes of these people to make Crypto currencies the new standard.  ;)

Of all the risks written by the op, the one I'm most worried about is speculative risk, which in my opinion, often happens like a bubble because of issues created by whales.  At this time, the market is still very new to dealing with sensitive issues so that prices often go up and down until the difference is very large.  Sometimes the government and the market are not much different.  If you follow the market, then who has the most money will have a big influence in the market so it will be easy to create issues that will increase profits.

I am deep in thoughts on this. Bitcoin having an effect on inflation either small or not, is it a good thing or a bad thing?

On this, you can't blame the people that much, not like your blaming them though but, the youths are barely given a chance to actively participate in politics. Thats with regards to aspiring for some of the top offices. Not because there is a policy that hinders them from doing so or they dont have enough resources but, somehow, the party system gives more emphasises to aged members of the party and are more likely to project them as flag bearers than the youths.

The greatest danger can be in the ignorance of many in the current financial system and considering Bitcoin as a means of quick profit, and therefore all they care about is the price aspect apart from all the other advantages that this technology provides.
The rest of these risks will diminish over time and within 10 years the risk of securing the private key/seed will remain the biggest problem.

I only consider the risk of policy and law are the real risks of using bitcoin for a common people like us! The other risks are not really risks per say. It's just that the crypto ecosystem is still at a nascent stage. So we probably will see more robust framework to encounter such risks and eventually mitigate them.

But the government policy or law is the real challenge where we don't have any real control. We are simply at a mercy of the politicians and beaurocrats. Other risks are manageable while the first two are not!

First of all though i don't have lots of technical knowledge because i am a student of accounting subject. And just studying at undergraduate position. Now the main thing what government aware the biggest risk factor in bitcoin which was money laundering Through bitcoin. Now my question is if bitcoin is banned in any country how they buy huge amount of bitcoin well its not possible in online p2p site reason no one will trust someone for a huge amount. Or if how he payment obviously if amount is big then obviously through bank account then if he done any biggest transaction Through bank account then obviously bank will hold the transaction until knowing the reason. Heres how he got caught. Then second way Through Through black market if a person know about black market then i don't think so is it matter of dose he had bitcoin or not he can laundering he money any way. Then another one is swissbank. Well i don't have any knowledge about it too. Well i don't think so for money launder is it matter bitcoin any law risk of their country.

Main thing is if government approved btc then they can more monitoring the btc activity of their country. Otherwise law will be just a colum for government law book. Its won't matter for anyone.[/list]

In the case of the risk that you describe, the risk of money laundering is what is considered by every country not to legalize bitcoin until now, because it is true that if bitcoin was legalized, many officials and rich people manipulated their wealth by investing in bitcoin in addition to money laundering.

Of course, there are risks in using Bitcoin, like any other monetary system. There are great risks and benefits. The first of these risks, in my opinion, is sharp fluctuations in prices, but this can have two sides. There can be loss, but also there can be high profits, also there are risks in laundering Funds move money across borders easily and this causes great concern to all governments.
As for the rest of the risks that you talk about, they are a source of concern for governments and central banks, not for ordinary people. On the contrary, they can be considered advantages and not risks. Therefore, by comparison between the risks and benefits in using Bitcoin, we find that the benefits or features in using Bitcoin are very large and overcome any other monetary system, especially These risks can sometimes be overcome or bypassed, and this makes Bitcoin superior to all existing monetary systems.

actually this is a general statement and not only be addressed in Bitcoin but the Whole cryptocurrencies .

meaning that the risk is in every coin we will be investing .

yes that is one fact that laundering is what the reason why government is trying to hinder total adoption of this currencies.

The degree of the risks that you mentioned was much higher before than today. And if Bitcoin was able to reach the mainstream amidst those higher risks in the past, then it could be more easily adopted now. It is obvious that Bitcoin is now more acknowledged as a financial alternative, whether an asset or a currency, than as a rogue currency in the past.

Also, it seems Bitcoin cannot be made to bow down to policies and laws. There are countries which treat Bitcoin as a sort of an enemy like Nigeria. But notice how Bitcoin even thrives more in those areas.

Thank you for your reply. Investment risks are great for individuals, but you can choose investment methods to deal with them.

Yes, I agree with you. You added what I wanted to express. ;D

Indeed. Even though as you enter investing in crypto, lots of risks is already expected, you still shouldn't let such take over your earnings instead you should find away on how you can avoid or reverse those risks into something beneficial towards you. If you are too afraid of confronting those risks, might as well choose not to invest or invest on something safer in crypto though there's no such thing in here. You should also remember that bitcoin is still developing and soon those risks might disappear or may occur less likely as new innovations aids safety and security towards users and investors.[/list]

The risk of law and policy seems redundant to me so I don't think that it should be separated plus they're a difficult one to avoid because it's the government itself that we are against and we all know that what the government wants, they will always be able to get it.

right, the government makes rules and we have to obey them, if we fight them we will certainly deal with the law, therefore for bitcoin I think we are still lucky that bitcoin ownership is not prohibited, but we must not use it as a means of payment, and if it is for trading then there is a risk losing money is personal responsibility

So far I buy bitcoin only for investment. Bitcoin can also be used as a means of payment but the reason people buy bitcoin is for investment. Investing in bitcoin also has risks, but investing in bitcoin can make us get big profits. So I think the risks of investing in bitcoin smaller than on profits.

every action there must be a risk as well as bitcoin investment, but if we are careful then the risk is small and if we are greedy then the risk faced is very large depending on how we control our emotions,

Here are 3 crypto investment risks to understand:

1. The risk of cryptocurrencies is relatively large because the medium of exchange only uses cryptography. This means that there is no guarantee of assets from the investments invested. 2 Fluctuations in the price of digital money are also very high. So that it becomes a trading transaction that is classified as very speculative. But we don't need to be afraid of all the risks, because if there is no risk, there will be no profit.

the security of bitcoin isn't good mate that's why op telling the risk when it comes having such asset wherein reason as well government were against in it and most of them wants to ban bitcoin. But yes because of strong support of bitcoin it can be vanished no matter what happen.. Probably let's just a accept the fact that it's okay how it can be use it right now, instead of assuming something very impossible to happen in the future , right?

I appreciate your sharing this post because, about the real high risk when we have decided to invest in this market, the risk is something to accept, but in order to minimize the risk, we need to understand all the technologies as well as the development direction of the project as well as BTC.

From the start, everyone has said that trading crypto assets will always be a high risk. even some and even all exchange platforms also include such warnings from the start. so the crypto market is not a place for those who just want to play and throw their money away.

I think the risks of policy and law should be united because it's essentially the same sort of regulation pressures. If banks' guidelines aren't legally binding, their impact is insignificant, and if they are legally binding, they basically acts as laws. Also, the banking sector plays a major role when legislation on financial matters is developed, so it's also a connection that justifies making it a single risk point. As for substitution, I think it's a very low risk because there've been tons of altcoins for years, and yet Bitcoin is the market's giant, so it doesn't seem like they can pose a big threat. Another hypothetical risk could be the development of quantum computers to the point when cryptography of Bitcoin becomes obsolete. But I think it's not more likely than substitution.

One of the biggest risks in Bitcoin investing is its volatility. Bitcoin price fluctuations are so fast that they can change in the blink of an eye. No one knows when the Bitcoin price will skyrocket or even fall. The second is legality because in some countries Bitcoin is only allowed to be used as a commodity, not a means of payment other than the country's currency. The third is digital theft because Bitcoin investments occur digitally, so there are many risks of theft that can occur by hacking due to poor security in Bitcoin investments. If your Bitcoin wallet is hacked by irresponsible people, of course all your assets can be taken away.

sincerely for the case of a country like mine I would say that the government of my country would fear bitcoin due to bitcoin decentralization, example:

with fiat my country's government can control everything, they know how much money and other assets the opposition parties have and with that they can easily limit funds for the opposition parties, of course without money the opposition parties cannot make a good campaign that allows them to win elections. but let's imagine that the opposition parties bought 10 bitcoins for the price of 1000$ and sold for the price of 60,000$. my country's government wouldn't know about it and the opposition parties would have a lot of money to campaign, in my country's case it would just be that " decentralization of bitcoin " the government would be afraid of bitcoin.

It's a great list you provided here for additional knowledge, mate. Thanks for sharing this, much appreciated.

I know there are really a lot of risks when it comes to investing. Risks are present in any decision you will make and execute. Bitcoin investment also possesses those risks like what other investment vehicles have. Everyone must know that investing is really risky and it's going to be a lot risker when you enter it without enough knowledge about it. However, you can always minimize it by proper research before diving into it. Now, if you are uncomfortable with other risks it has, then maybe you have to find another investment that you could have whole peace of mind. Risk is always present, you can just make ways to lessen the chance of you falling onto the losing end.

And unfortunately the risk of loss comes in many ways and forms, not only you can lose a lot of money if you do not know what you are doing and you invest at the wrong time when there is a lot of hype and then the market turns against you, that is just one way to lose your money but we know that are many ways to do so.

Another way in which you can lose your coins is due to scammers that we know are incredibly common here and that can get away with almost anything, and the final way in which you can lose your coins is if you are unable to maintain backups of your seed words and your private keys and this can be very problematic because unlike the other two this is a problem with the nature of cryptocurrencies themselves, so even if you think that you are doing your best in order to back up such data many things can happen that can still make you lose those coins.

Didn't quite think about that but that's a valid point for sure. So the interconnectedness between different sectors through the "interface" of using the same or similar hash algorithm is actually another safety barrier for cryptocurrencies in general or Bitcoin in specific. If someone cracks Bitcoin, we'll have a global problem anyway and that person or entity who cracked the algorithm would most likely not abuse that knowledge because it would certainly lead to unstoppable global riots. I guess if someone were to crack it, the best that entity could do is ask for a couple of billion dollars and hand over the information to a safe organization or institution.

The price of Bitcoin going down is normal now. The market decides, and Bitcoin price going down sometimes is also good, it makes the market healthy, not all time going up only. Take note that there are already a lot of people using Bitcoin, some selling it for something and some buying it.
It can be considered risk, it will always.

That's the basic things happen to bitcoin since buy and sell is the first thing people do on bitcoins but the one we need to look for upon buying is when should we execute our orders since sometimes we might fall on bad timings since the market is at the top then suddenly it falls that's why we need to be more careful upon buying and always check the chart so that we will not be a bag holder and can able to earn something in return if we place at a good position upon buying.

I agree with you about the money laundering risk. Bitcoin is superior to fiat because of its anonymity, decentralization. But because of that, criminals and terrorists will take advantage of the anonymity to be able to launder money and trade illegally across continents that are difficult to control by governments. Bitcoin is really dangerous when used by criminals.

There are many benifits of using Bitcoin but there are some risks of using Bitcoin. If you can invest and trade Bitcoin and market goes low it can effect Bitcoin price and you can loose your money but if you patient and wait for market pump you can earn profit and there are some account scam issues can happen but if you will not share you private key, password or seed phrase you will not loose your account.

As it's been there for more than 10 years those information are really being adopted by people who take time knowing

and learning this asset, there are many pro and con and it going to be depend from how investors and traders will treat

this up and how they'll going to manage and balance both the risk and opportunities.

When a crime uses media or tools to support its actions, is the media to blame?  The analogy is when a thief uses a crowbar to help his action, what should be destroyed is the crowbar?  The risk of money laundering or terrorists must be resolved by the government, not blaming crypto.  Before there was crypto, there were too many terrorists and corruptors.

If you do not take risks in life, you will never succeed.So the bigger the risk you take, the more successful you will be at some point. Investing in Bitcoin here makes you feel a lot of risk. Yes there are a lot of big risks but if you do your luck favors you are short term In between you can become rich. So I would say that where there are more rickshaws, the chances of success are much higher.

To my own view of understanding is that the price of Bitcoin and all cryptocurrency, for that matter is incredibly volatile because it is such a young currency and market. It is not uncommon for the price of Bitcoin to experience wild swings within a day or even within minutes. This makes trading a dangerous venture.
Bitcoin is so risky is that it is a tradeable asset but it is not backed by anything. Bitcoin has value only because the people who are trading it say it has value. There are no governments or regulatory bodies helping Bitcoin retain its value, it has no unique value at all.” This makes it an incredibly risky investment if the market ever decides it’s no longer valuable.

I honestly see all these to work in my favour and not really to be a risk against me. FYI using any cryptocurrency is one way or another going to expose you to any of these so called risks especially  the risk to speculation, I say so because cryptos are highly speculative and it's one of the ways to get a market reaction.
Talk of money laundering, fiat or cryptocurrency these risks will always be there and this is all up to character of the person and not because of being a crypto user.

^ It does not mean you are a high risk-taker you are also can be able to make a high profit. That is not how BTC investment work, you need first how to understand the market situation, the market price flow, and the behavior of BTC price. There is a big risk, yes, and that is why OP gives some point of managing risk that possible we can handle and so if we are already there, let them be. I can consider BTC investment is very crucial the most investors, it could be the reason that their money was lost.

You should be aware on everything because if we do dive in into investment then it would be just normal on having that studying on everything from pro's to con's so that you would really be aware and would make

out  some plans whenever you do possibly experiencing some problems or on how to handle up your profits as well.Even if we do invest with Bitcoin then it doesnt mean that its risk free.We know that this is the main

coin that been supported by the community which no doubt that it is sitting on the top ranks.Some would just opt in on holding instead on actively trading and some do consider on buying altcoins as an other
way of income.

despite the risks being laid out by the OP, we all know that a lot of us are still banking on bitcoin. but would be nice if every crypto user knows such risks, at least he can strategise how to lessen or prevent them from happening to his funds. and instead use those as opportunity to grow his holdings. not all people can manage those risks as some will panic when something goes wrong in the market. sometimes it takes experience how to tackle those risks.

We all face risk even though at tough times having jobs, there's a lot of circumstances to face at specially when your boss pressures you a lot in work. Same with bitcoin, it's not really a physical investment which you see in real world because we're bounded to virtuality of a certain assets. The risk on bitcoin was only the volatility and unstable price, but the potential was very high in obtaining the highest profit that you may acquire.

There will always be a an incalculable residual risk when you invest in intangible assets like Bitcoin. The same way Bitcoin appeared out of nothing and conquered the markets' interest by storm, the same way it could disappear due to another innovation coming from nowhere. It is quite a matured technology by now in the sense that people do trust it, that they do believe this will be around for a while, but you should know that in the digital space surprises can wait behind every corner in a much faster way than for example in the real estate market where you can actually see and analyze market sentiments and movements.

All investments have risks, including investing in Bitcoin. But the risk of investing in Bitcoin may be much higher than investing in other assets
such as gold or real estate. We don't know when Bitcoin will be in the internet world, moreover Bitcoin is a technology that can be replaced with
other more sophisticated technologies. Bitcoin can just disappear, if there is no longer demand, then that makes Bitcoin more risky for its volatile price.
This makes the money we use to invest in Bitcoin can be lost quickly, if the wrong decision is made. Therefore we must have knowledge before
deciding to invest in Bitcoin, at least can understand the basic rules of how to invest in Bitcoin safely.

all things in the world have good and bad sides, so we must have a broad perspective to be wiser in determining attitudes. anything can be used as a tool of crime, but when it comes to crypto or bitcoin, the problem will definitely get bigger and wider, because basically bitcoin is full of pros and cons.

basic knowledge related to the world of crypto and investment is needed to be able to profit here. The first and most important thing is that we must understand the risks of high crypto market fluctuations, so we don't arbitrarily spend capital to buy certain coins.

The main risk of using Bitcoin is that you could turn into a toxic maximalist asshole that nobody who isn't into crypto wants to be around.

I also experienced this risk when crypto is not legal as a currency in my country. So, when I am found using crypto as a manner of currency to pay something, It means that I don't obey the rules and I will get punished.
But, every risk may also offer other joys and profits. Sometimes, we may get the risks in using Bitcoin.
But as long as we can see where it is, and what is Bitcoin is using based on the rules that are allowing it, it may not be a matter.

Bitcoin is not a risky investment, those who are against Bitcoin are making us think that Bitcoin is at risk for its instability and security. But in terms of security, Bitcoin is irresistible and volatility makes it suitable for investment. Already the price of Bitcoin has surpassed the price of gold, now everyone is just waiting for massive adoption, its full worth can be realized when the majority of people will accept it.

The difference is bitcoin prices have big volatility compare to the other investment type. Every day, you can see that the bitcoin price will always change and will not stay at one level price. If you have control and do not panic to see the price move, you will not sell at a low price. Otherwise, you will sell your bitcoin at a low price and regret why you sell too early.

But yes, patience will be the key to controlling emotion and not panic because of the price. Besides that, when you invest in bitcoin, you can decide when you want to sell but do not sell if the price does not increase higher because that can make your profit not bigger.

The price of Bitcoin fluctuates greatly, and investors have greater trading risks. Many Bitcoin traders obtain spread income by selling high and buying low Bitcoin on the trading platform. At this time, traders need to bear the arbitrage risk of Bitcoin's skyrocketing and plummeting. If Bitcoin is used as a trading medium, the huge fluctuations in the value of this currency will bring huge risks to users.
Bitcoin's anonymity makes its transaction records difficult to track, and it also provides channels for illegal and criminal activities such as money laundering, drug trafficking, smuggling, and illegal fund-raising.
Whether the blockchain technology that Bitcoin relies on can withstand the test of security, and whether the anti-risk ability of the Bitcoin trading platform can match the rapid increase in transaction volume. Bitcoin trading platforms in some countries have experienced incidents such as security vulnerabilities being exploited by hackers and causing the loss of Bitcoin hosted on the platform, which would have caused significant losses to Bitcoin investors.

It seems to me that you think about Bitcoin as a dummy. Have you ever heard that Chinese government started replacing gold by Bitcoin in offshore yuan security. I mean that nowadays Bitcoin, corn, cotton, copper are collateral of offshore yuan.
Anyway I am ready to take risks to get profit, as I consider Bitcoin to show us big increases and potential in the future.

For me, that's the only real risk. The rest enumerated can be associated with fiat too. So, no biggie. However, Bitcoin is even receiving nice reviews now than it did half a decade or so ago. It's a given that a few years down the line from where we currently are the reviews will be far better than what we have now. The law risk is because a lot of nations haven't seen the need to support Bitcoin through legislative means and certify it a legal tender yet. These nations may not be able to hold this position longer than necessary when they find out they're getting left behind with this paradigm shift if they don't key in. It's just a matter of time, and Bitcoin (by extension cryptocurrencies) will become the ultimate winner.

To be honest, I haven't heard of that thing you said. I only know that the Chinese government has denied the currency properties of Bitcoin and is not allowed to circulate and use as a currency in the market, but it has not denied that it is held by people as a valuable asset.

Although I said the risks of using Bitcoin, I still hold Bitcoin firmly. same as you.

The money laundering somehow gets controlled by the government by doing KYC verification. I had seen that quite a lot when using any custodial wallet involving crypto. That is what they fear of.
Though at some point, I wouldn't let anyone get hold of my money anyway. I wouldn't send it to anyone that is surely not part of what I am aware of interacting at everyday.

I think there are more than five risks involved with using bitcoin, there is also the "risk of the unknown" - imagine the possibility of a disaster that took down technology, electrical grids and the internet world wide, there’d be no way to access your bitcoin?

Also, there is the risk of investment-
Investing in bitcoin is the greatest risk of all because unlike the futures markets traded on the exchanges, disputes can be easily resolved because they are regulated. However, the reverse is the case when you enter the world of cryptocurrencies. It is both unregulated and decentralized. Anything can happen both gain and loss.

In all, one has to make up his or her mind to accept the risk involved, because without risks there are no rewards.

There are many benifits of using Bitcoin but there are some disadvantages. If you trade Bitcoin and its price will dump it can give you a loss. And if your account is scamed then what will you do. But don't worry if you forgot your password you can easily recover your account if you shared your private keys to anyone then its hard to recover.

I don't get it. Money laundering? Your kids is selling drugs? You stay straight and you avoid all the tossery.

quote: "And before anyone managed to turn it of it had invented income tax". Hitchhiker's guide to the galaxy. STFU..

Bitcoin is just an alternative and not created to replace fiat money. It was decentralized digital currency that government don't like because they don't have an authority over it. Government can regulate but can't stop bitcoin because people will always find a way to use it despite of a lot of risk it can give. Bitcoin is risky but profitable and useful.

With some of the risks involved, it doesn't mean bitcoin is the most dangerous investment. Of course, all investments have their own risks, not only bitcoin. With the existing risks, we use them as lessons and make us have to be more vigilant and careful so that our assets remain safe. Of course, behind the existing risks there are also advantages of investing in bitcoin that are not obtained in other investments and are certainly profitable. So we are really smart in investing and managing our own assets.

This is not only happening in Bitcoin. All kinds of investments have the risk of losing money. Even you invest in Gold, you also can lose money if you don't use a proper way (strategy). Pump-dump won't be always bad for you if you know how to take advantage of this. Make sure you will buy Bitcoin when it is dumped and sell on a pump then.

Maybe what you mean is fluctuations in the price of bitcoin that can provide losses or gains. If the price goes down you don't sell it, you just have to wait for it to go up. All trading requires strategy and strategy requires basic trading knowledge. do not trade without the provision of knowledge about trading, it is the same as you plunge into a steep abyss.

For wallet security it is the duty of an individual or the responsibility of the owner. Keep your wallet private key and secure every device connected to the main wallet. must be alert.

Where there is no risk in life you will learn something and if you win you will lead. So there are many risks in our entire path from birth to death.So I would say you can never win without risking your life.

What is the correlation to Bitcoin, mate?
Do you mean to succeed in your life, you need to invest in Bitcoin?  ;D
Bitcoin is surely a high-risk investment but it also has a bigger advantage than other investments. Bitcoin offers possible higher profits, and investing in Bitcoin is easier than common investments.

The risk of substitution is the least thing I am even going to think of for now, because I know for sure that other coins that we have in the market right now has a lesser chance of replacing Bitcoin for now as I am seeing it. Though I do think that after the last halving things are going to be a bit different, but let’s keep waiting till then.

And moreover I don’t think that it is going to be bad, Bitcoin will continue to stand strong as long as the developers are doing the things that they are supposed to do to keep the network going seamlessly. So, I will say that the developers also has a part to play in making sure that Bitcoin continues to stay.

BTC is currently a huge place for criminals to take advantage of money laundering, and most central banks are still hesitant about accepting BTC as a payment currency because BTC is unstable and has a high risk thoughts of those who don't acknowledge the technology background of BTC. Most of the time now BTC is more accepted and popular but we all have to admit that BTC is not a coin that stabilizes a price over time like traditional stablecoins.

you forgot to  out is the greediness and noob of some users , this is the risk if you know nothing about what you are doing and just engaging according to what have told you and not because of your own studying.
we as users usually put ourselves at risk and that is not what about those you mentioned.
our faith depends on our knowledge and not because of the real time scenario .

what are the risks of bitcoin?? so if we send Bitcoin to the wrong person, or our Bitcoin wallet is hacked and someone steals our Bitcoin, it is very difficult and even impossible to get it back. Bitcoin is also not protected by any entity, so if we lose Bitcoin, the service provider or 'Bitcoin network' cannot compensate us. That's why we have to use trusted products and service providers to help us, which I know is often the case. on bitcoin, it's not someone else's fault, but our own fault..

There are many accusations that bitcoin is used for money laundering, of course there is no valid data that can confirm it, I have never heard of any cases and confiscations of corruption stored in the wallet so everything is still under suspicion.

Actually it's obvious that no investment that doesn't involve into risk, so any cryptocurrency more especially bitcoin investor don't really consider it's speculation as a challenge, because an investor knew that for investment two things are involved which are advantage and disadvantages, weather the market go against the wishes of the investor or it comes to the profit of bitcoin, so in all aspects investment they most be risk, entrepreneurship let us to understand that risk taker's are pron to accelerate for life, so we don't have to be afraid of risk when it come's to bitcoin industry or investment.

Those who are afraid of the risk of speculation are novice investors who are just getting into bitcoin. we know bitcoin price fluctuations are very high, there can be sharp declines and increases and only a few minutes. those who are real investors and have mastered the market will not panic with the risks that will occur. they have a good strategy.

whatever the risks involved in using bitcoin, it is a challenge that will train in all aspects. Bitcoin is able to provide more profits and can provide painful losses.

One of the biggest risks for bitcoin right now is regulation. In recent weeks, China has clamped down on its cryptocurrency industry, shuttering energy-intensive crypto mining operations and ordering major banks and payment firms like Alipay not to do business with crypto companies.
Also the government are ban in some countries because of alot things going in there country due to Bitcoin and why some are using the influence of it to laundering money, especially in my country.
Bitcoin is a high risk investment but profitable when the market goes your direction.

The high volatility is a major risk. People who accept BTC as a means of payment are often in the red when prices are falling. Government regulations represent another risk.

I think that the biggest risk of using Bitcoin is its volatility. Volatility is everything of this market and Bitcoin. It is the main structure of all of the cryptocurrencies. When you decide to invest into Bitcoin, you accept that you are taking the risk of losing your money also. You are aiming to benefit from this volatility in the end. That's why you are investing into Bitcoin. Some people don't care about it. And when they start losing money at a fast pace, they get scared and start panic-selling. This destroys the market also.

So, one should be aware of the risk before starting to trade Bitcoin. There is no guarantee for you. There will always be ups and downs in the price. You should draw a roadmap for yourself and act according to it if you are having a problem on managing your investment.

Well, there are too many factors of risk in bitcoin but I don't see the volatility as the major risk, because most likely holders will not be losing their capital amount since no one will be selling bitcoin at the lowest price. The risk of bitcoin that I afraid of are those big holders or big players in the market, once all of them were have the same idea to sell their bitcoin, that could be a huge dump possible. However --for now, let us not think that matters, enjoy your life because that is too short.

There's no investment without risks. Bitcoin is not exempted. The volatility nature of Bitcoin is a unique feature that aids the growth of the market with time. One major risk I see is the risk of being hacked, seeing that bitcoin is a digital currency although it is highly protected from easy access by hackers. I believe it would only take time before many of them start figuring it out. Except Bitcoin it is constantly improved.

lol Bitcoin actually is one of the riskiest coin to invest if you are not willing to Buy and Hold because while This coin is the slowest moving coin also this is the fastest dropping coin.
so best to be ready riding with bitcoin because this may bring you to the losing hard in crypto investment
in terms of payment , if you will not deal in fiat value then there is no risk in using bitcoin because paying and accepting bitcoin is not affected in any cause of fiat.

all risks are in our hands. indeed the most important thing to do is look for the best opportunity to buy bitcoin, so that the opportunity to get profit will be achieved faster and get the maximum. because the government has not legalized it, then we must be careful with our private wallet keys, because a slight mistake can make our assets lost and impossible to return

The only risk of using Bitcoin is that if we make a mistake in entering the destination wallet address, we will lose all our money. It is done formally and informally in this area

High volatility can be of advantage too. Consider you made a deal when bitcoin price was 30,000$. Now bitcoin price is 50,000$ means that you are in a 2x profit (approx.).  So you should consider both sides as if the price goes high, you will be in advantage.

Without proper knowledge about investing in Bitcoin is the big risk of using Bitcoin. Again, those countries where Bitcoin is not accepted by Government,  can a be a big risk for him not to obey the rules of the counties and may loss his Bitcoin during criminal Charges.

Using Bitcoin currently falls into the very Ricks.  Because if the government of your country has not legalized Bitcoin, then Bitcoin is not legal in those countries due to which the use of Bitcoin is prohibited.  So using bitcoin becomes very ricks.  Therefore, we request the government to declare Bitcoin legal in our country.

Of course, if it has been agreed that it is indeed used as a legal tender, then the agreement must be made even in a situation where the price is not good. it must be remembered that if you use bitcoin you can be sure there will be an increase and there is no need to hesitate.

in principle, if it has been agreed that the price will go down or up, of course it is a consequence that must be accepted and attached to the current state of bitcoin experiencing anything. but once again just to remind that bitcoin will always continue to increase even though there will be a correction. because that's how bitcoin has a method that once every 4 years there will be a bitcoin halving and where the price will reach renewable ATH.

in the Risk of Substitution you write no credit guarantee?
Since when can bitcoin be used as collateral for credit? As far as I know bitcoin is just a virtual currency and works without a single repository or administrator where everyone calls bitcoin a decentralized currency and Unlike other currencies in general, bitcoin does not depend on one main issuer.

In my opinion you are wrong. Although, Bitcoin is built on the POW algorithm so it needs a large miner base to maintain the integrity of the system, but I don't think bitcoin's security performance is bad. Bitcoin is purely deflationary, it is not the downside of bitcoin. Lol

The risk of bitcoin is that there are always people who are slaves to fiat, always using some trick to drag bitcoin down.

I think as long as we can trade bitcoin with fiat currency then it doesn't matter, my country is still banned bitcoin but I trade on foreign exchanges and when I want to withdraw or exchange to USD then they will transfer it for a maximum of 3 days.

When I store bitcoin in a cold wallet or exchanges wallet, the thing that worries me is getting hacked, I think the biggest risk if we hold bitcoin is a wallet that can be stolen, currently there are many malicious programs that enter PC or Android, antivirus updates do not guarantee safe , it is best to disconnect the internet frequently.

each investment certainly has its own level of risk but regarding bitcoin tends to have an unstable price, because bitcoin has an increase or decrease in the price of bitcoin with a certain time so that we can say it is a risk, because bitcoin itself is an investment that something where the investment always gives freedom to the cross section

It's funny that governments still think they can ban something that works peer-to-peer and is decentralized in nature. If it was that easy to ban Bitcoins then every country would have done such by now. The truth is that some governments aren't educated enough to understand what even decentralization means.

Governments have a tendency to ban anything they won't understand or profit from but bitcoin is an exception and I don't see how they can ban it. I suggest trying out decentralized exchanges for trading because that's the future of crypto exchanges.

Bitcoin investment is very risky if the government banned bitcoin, I think this is not a problem because bitcoin is stored on the blockchain and the government can't do anything with bitcoin balances, if we need cash then just look for an exchange that supports transfers to our bank accounts.

Everything has risks. Bitcoin is no exception. It's a double-edged sword where people can use it for either good or bad things. I think Bitcoin's biggest risk is the "risk of the law". Governments are devising regulations in order to "tackle" the growth of Bitcoin and other cryptocurrencies. Bitcoin can be legal in some countries right now, but that's subject to change. It's the day where KYC/AML is enforced at centralized exchanges, greatly defeating the purpose of crypto/Blockchain tech. But governments can prevent people from acquiring Bitcoin if criminal activity grows at an alarming rate. Their main excuse would be to prevent money laundering, tax evasion, and terrorist financing. After all, governments don't want people using something outside of their reach. We should learn to live on with these risks, and carry our lives as usual. As long as Bitcoin remains decentralized, nothing else matters. Just my thoughts ;D

People should really be aware about these risk and yes its really like a double edge sword on where it is indeed beneficial but of course it would really be having its cons too. Government would really be
one of the most common blockage or shall we say hindrances on why we dont able to go with full scale due to some very obvious reasons and thats where decentralization and anonymity do sets in.

Bitcoin had been issue about money laundering and other connected related issues which isnt really that surprising.As an individual then we could really have our own choice whether
we do choose to deal with it despite of those cons.

You can separate out risks of using Bitcoin from fiscal policy/shortcomings of its inherent structure (crypto currency, based on the block chain with a limited circulation) from the regulatory portion. I know you weren't providing a commentary on the distinctions between both but it's worth noting the difference because the regulation of Bitcoin is constantly changing, and the level of risk someone faces changes. That isn't necessarily a risk associated with the inherent properties of Bitcoin, though. It's a problem with the government in the country you live in, so I'd just make that nuance.

Most first world countries are trying to tamper down the growth of crypto, and that's a problem with corrupt politicians more than anything. Of course, to the average consumer, that is a risk to consider. Just not a property that was attached to Bitcoin upon creation.

The way I see it, Bitcoin like any other cryptos does suffer from volatility, and yes, that could be a massive drawback to investors.

But I always complement that thought with the fact that any investment has potential for loss, yes, perhaps not at the same level or as fast as crypto but the relationship is true in the other direction. The risk is measured and so are the rewards! It's a personal decision, and to me far better than traditional steady growth investments. Crypto is all about fast pace!

I feel unfortunate for people who have Bitcoin banned in their country. Not sure if I should be appreciative that someone loves Bitcoin so much that they are trading it illegally at foreign exchanges or I should be worried about you because these exchanges can enforce a KYC on you anytime. If you are asked KYC, either you fake the identity or you reveal the illegal access. Both of the options are equally punishing because the exchange can seize your funds in both cases.

If hack is your primary concern, you can transfer your Bitcoins to a paper wallet that is kept safe and offline or just purchase a hardware wallet like Trezor.

The Risk of using Bitcoin:-
Risk of Losing the Private Key or Password of the External Wallet Services. Bitcoin is volatile , price changing risk and if you are investing in wrong platform Or company. 🙏

Theres also the chance the banks may arbitrarily decide to freeze accounts and/or deposits. At least I've heard of it happening.

Alright you have made some good points, but most of these things I believe that they can be avoided or they are not just much of a threat to Bitcoin. Personally I do not see alternative coins as a challenge to Bitcoin. Of course, a lot of them has features that  we know They are actually meant for them to be able to compete with Bitcoin and take over the markets as the number one, but that’s not going to be possible, because Bitcoin has so many advantages over them all.

In terms of being secure, Bitcoin is more secure than most of them. Your wallet won’t just get hacked unless you have made some kind of mistake online that would have resulted to that. As for Bitcoin not being legal in some places, this is something that is above us, and we can’t do anything about it. Then also Bitcoin is decentralized, so even if it is not legal in your country you can still make use of it for transaction or even invest in it without having any problem.

There are so many P2P exchanges out there that you can make use of. As for speculation, it's a normal thing that happens in every market. It is up to you as an investor to know the right thing to do, you have to know how to do technical analysis and how to predict the market at least to an extent.

This talks about security but talking about other aspects in talks of risk then this is where do mention about regulation or something attached to it knowing that Bitcoin isnt globally accepted which there are countries

or places in the world that do really prohibits out on making use of bitcoin or other crypto which simply means that we should be careful if we do really intent to make use of it.

Risk is also talking about volatileness of its price which is a common thing because it cant be called a market if it doesnt involved buyers and sellers.

The risk of losing its value is what mostly the people are thinking about, even merchants give that kind of doubtful support as that is really it be going to happen anytime. That is why we can see that many big and known establishments are still not adopting the system as they are worried about that, and asking what if someday Bitcoin will be crashed? We can't blame either and we are aware of those possibilities which couldn't stop from being worried.

Money laundering can happen with Bitcoin, yeah but it is not specific to Bitcoin also. People were laundering money a lot even before cryptocurrency market existed. And now, I bet that fiat currencies have been used much more than Bitcoin for money laundering purposes. Now people think like they can continue to do this anonymously. But they can be tracked also from now on.

the main risk that comes to mind when investing in bitcoin is that you will lose money. due to bitcoin being a volatile investment, investing in bitcoin will not always yield gain but also losses, in fact your losses is much more likely to happen than your gain especially if you do not equip yourself the right knowledge when it comes to investing cryptocurrency. there are also different risks like using bitcoin for criminal purposes like money laundering and anonymous drug deals and such.

The OP got some serious and cool info.
But yes i am here to counter the OP.
Everything that has profit comes with risk. You can’t get good profits without any risk
Moreover you should thank to the decentralised nature of Bitcoin, for which if you want you can easily avoid all the risks mentioned above in OP.
Yes the thing we need is yo be extra careful always.

Risk of losing my personal keys, passwords, or logging in credentials for wallets.   Being hacked or having a email get compromised are also risks associated with using bitcoin.

It is very easy to create a issue for increase the market. crypto market is very large in all our world. I think that is right three most topics we can discuss about bitcoin using the risk. Any government not trace bitcoin exchange terrorist can use it for terror funding and other illegal work.

We can face some issue in the future with bitcoin in our country bitcoin not legalize.

There are indeed many risks in using Bitcoin. Bitcoin is equal to our money. Everyone is very cautious when it comes to the money of each of us.
Nothing is perfect. One of the disadvantages of Bitcoin transactions is that you don’t know who is opposite, and there may be a risk of funds being deceived. The wrong address can not be retrieved.
You need to trust the other party when transferring money. Don't give you a private key to a stranger, and don't transfer money to a stranger.

There are some risks of using Bitcoin for Trading it can gives you big lost because its price is unpredictable and some time liquidity issue can be happen these are some risks of using Bitcoin.

Risk of using Bitcoin is it is volatile and fluctuating market , scams or frauds, financial loss, people should aware of these risks. It is not only in Bitcoin everything has a risk.

You don't have to obey all the time, people can choose what they want in an ideal world, that's how democracy should be and the people in the position should do whatever protects the interest of the people. One way to fight is to teach the younger generation on how to choose the right leader and how to be the right leader, and we should learn to vote not on popularity but on their deeds.

The risk of speculation should be known by every investor before making an investment into Bitcoin. People should be aware that Bitcoin price is also easily manipulable like the other cryptocurrencies in the market. However, FUDs have less affect on the price now and it gets better as time goes on. But still, the price will always be volatile and we should get ready for bad periods also.

Yeah, nobody got into jail if they don't do any illegalities. As it was not prohibited to use Bitcoin that wasn't a big problem anymore. But if found illegal then might expect that someday have someone will come to us and seize all our Bitcoin.

But what I'm worried about is if someday I get hacked and lose control of my account. I know we are prone to this, in fact, many people had become a victim to this. Acquiring a hardware wallet maybe will it helps (well, that is a little bit expensive) but what we aim for now is to keep our funds safely.

Policy and Law will depend on each country.
Today, there are some countries that openly accept or reject cryptocurrency in their country. This is related to the various considerations in their respective countries which are certainly adjusted as well as the conditions of their country, including the system.
However, for countries that have legalized Bitcoin and other cryptocurrencies, both are not a problem anymore.

This will really depend on each person. However, We cannot avoid if there are many people (especially for Beginners) who indeed only rely on speculation compared to analysis. However, every speculation is certain to have its own losses. What needs to be considered is how we take the risk.

We cannot avoid this, money laundrying can happen in many fields, not only Bitcoin.

Everything will have pros and cons, will have positive and negative sides, will have advantages and disadvantages.
And how we take the decision and do it will really make us take the sides. I personally will prefer to take the advantages and positive sides.

it is important to be more aware of the risks of bitcoin as it is said. does not mean that bitcoin investment is a risky investment but it is good for us before entering into it we understand the positive side and also the risk of bitcoin itself. we also have to know that if we have entered into it then the risks that exist must also be acceptable. I think so far the development of bitcoin is still doing well and does not harm the government or others. what is certain is that if we can position bitcoin well then it will not harm and can make us get the profit.

About the substitution, why is it became that deflation looks a bad thing with that description? isn't it that most of us are looking to defeat inflation and that's why deflation is a good thing and bitcoin is known as a deflationary currency/cryptocurrency which is a good choice to invest and keep as our assets? I don't also see that it's security is poor. That's why there are a lot of miners and nodes that are on it to tighten its security and its network.

a part from all the risks stated above, i feel like people tend to take things way too easy when it comes to bitcoin and especially in parts of the world where bitcoin is not known, for example if there is some case and you are brought on the table and they find out that you have been using bitcoin they will send you to prison, because even if it is a digital currency there are no real laws on it especially like i said in third world countries where they will straight send you to prison.

That's a good list. There will be more scamming and more shitty projects pulling attention from btc, plus all those issues. But it won't matter much in the long run. btc has survived much worse throughout the years when it was much more fragile.

For investors, the biggest risk of Bitcoin is its volatility. The price of Bitcoin is unstable, and no one can tell when the price will rise or fall.
And now there are still many people who don't understand Bitcoin, but use it as a way to make money quickly. It is easy to make wrong decisions because of greed and lead to loss of funds.

Bitcoin is our money. No one wants to be cheated of money by a liar for no reason. The risks in Bitcoin are also present in other industries. Nothing is always safer. We can only be careful not to be deceived. The anonymity of Bitcoin will protect our privacy very well, but it is also a shortcoming that prevents us from tracking the address where we transfer money to the other party. So that we don't get back the money we cheated.

The risk of speculation is one of my greatest concern. Volatility can play you games especially when it comes to the use of Bitcoin for payments.
But, without the volatility, Bitcoin wouldn't be this popular because we would have layed on a stagnant price without investors. It is the nature of Bitcoin and we have to embrace it.

Just set a price that you're going to sell and have a long-term goal when you invest in bitcoin and have tons of patience and you will be set. The problem is that people think volatility is the enemy when it's really nothing if you're not tunnel visioned and greedy.

Volatility is a huge risk one needs to consider when investing into Bitcoin. You can either end up rich or poor in an instant due to the constant fluctuations in price. This makes Bitcoin unsuitable as a currency for day-to-day payments. You'd only need to worry about this if you use Fiat as a unit of account to determine Bitcoin's value. If you use Bitcoin directly regardless of its price relative to Fiat, there should be nothing to worry about.

For what I know, life is full of risks. The higher the risk, the higher the reward will be. Bitcoin may come with its benefits, but it's certainly not a perfect system. The same can be said about Fiat. What's important is that Bitcoin remains decentralized and censorship-resistant so that it can stand the test of time. Governments and banks will do everything in their power to try to stop it. But as long as there's strong community support, the project won't be going anywhere. With how everything's been progressing since day one, I'd say that Bitcoin will be here to stay for a long, long time. Just my thoughts ;D

You’re right but even with these regulations , investors can still make good profits from it.

Bitcoin will never be shaken and will not be under the control of the government. Bitcoin does remain decentralized because that is the immutable nature of bitcoin. The government and some big players are trying to regulate bitcoin but will not completely.

There are many pros and cons with the use of bitcoin, it will always be there even when. Even though bitcoins will be mined out, the value of bitcoins will be even more valuable due to the scarcity of bitcoins, of which there are only 21 million.

Bitcoin price fluctuations have advantages and disadvantages, depending on how everyone uses it. Bitcoin is a very valuable digital asset investment today. The development of bitcoin is growing rapidly and cannot be dammed. Almost everyone in this world is familiar with bitcoin and cryptocurrency and the technology in it. Behind the risks of using bitcoin, there are more benefits and will change the way of transacting in the future.

I understand the risks mentioned by the OP but consider the advantages of bitcoin and you will find that there are more risks in the fiat money than bitcoin itself.
I think all the risk which are told by OP, more or less exists in fiat system also and the biggest drawback of inflation in the paper money. Did we stop using it even though we know it will keep on losing value ?

Good and smart investors to be exact, remember that not every investor understands this risk and so they end up not profiting from their investment and instead lose even more money in the first place.

I think people who are involved in bitcoin investment certainly know about the good and bad opinions of using bitcoin. they do research and observations about bitcoin so they can minimize the risk in using Bitcoin.

Perfectly said! that's exactly what people who desire to work with bitcoin need to understand. All those mentioned from OP are also exist with current fiat system. If you understand deeper, Bitcoin is a good alternative not just for investing but also with the transaction process, for now, there are lapses that mostly pointed by the government but in reality, it's just them who thinks that way and if they will also check and see how fiat works, the very possible that they will adopt Bitcoin.

Let those people who still in doubt allow time to open their minds and start thinking what are the offer from this industry that will allow them to compensate. Just think 10 years back, those who believes earlier are now the gainers from this industry.

The price of Bitcoin is unstable and volatile, and the price may change at any time. A fall in the price will cause investors to lose money.
 
Bitcoin will not be guaranteed by the government like fiat currency, and it is easy to be used for criminal acts such as money laundering.

Yes it may violates laws. However l think,  we can not deny the fact that bitcoin and crypto currency is really a big help nowadays for people like us. Especially these times of pandemic that our economy here in the third world countries are not stable. Well, for me it's better to work with cryptocurrency rather than doing crimes and violence in order to earn and provide for the needs of my family..another thing is, I think if this will be prohibited by Law, then Law maker and senators here in my country should be first be prohibited too..there were famous senators and influential people in politics and celebrities was very fond of working with bitcoin and cryptocurrency.

The use of Bitcoin is risky, and the use of fiat currency is also risky. The risks of the two are similar. The risk of Bitcoin more than fiat currency is that there will be countries that do not allow the use of Bitcoin for payment or investment.

Bitcoin price fluctuations not only bring risks and losses, but when the price rises, it also brings a lot of profits.

Bitcoin's decentralization and anonymity will not be regulated by the government. Many people will benefit from this feature and use Bitcoin as a money laundering tool.

I agree with the OP about the risks of using Bitcoin. I added the risk of using Bitcoin is independence from the banking system. Each individual will have to manage their own cryptocurrency. If they lose your password, your wallet recovery string or your device gets hacked, you will lose your Bitcoins forever without any agency guaranteeing you. It's different from the bank.
Using Bitcoin is solely responsible for security.

Because bitcoin transactions are very safe as long as the user has access to the wallet, and the blockchain is the most secure security system that even the government cannot tamper with, bitcoin regulation by the government is impossible owing to its decentralized structure, as you said to me. The government and the market may be fairly similar at times. If you look at the stock market, you'll notice that the person with the most money has a lot of power, making it easy to create obstacles that increase profits.

I'm aware of the risk of money laundering but it doesn't concern me as I don't do such things. The risk of speculation is the one that is seen as one step ahead among the all reasons. Because we all know that cryptocurrencies are speculative assets. They can be affected by bad news and we can see the reflection on the price also. This must be one of the important points that people should watch out for.

The biggest risk of using Bitcoin is it's price. It's price is unpredictable anyone can't guess the future price of bitcoin it will lose or dump you can lose and earn from it but it is risky.

The risk of speculation is a good opportunity for those who are researching well and studying the growth of btc. However, the risk of losing is high because no one knows what will happen today and to the future of btc but some of it uses this to profit big time.

it is normal because it returns to the initial nature of bitcoin which is indeed volatile so it is very normal when the price of bitcoin is unpredictable for the future. and what is now being done mainly by day traders is only speculative by looking at and doing separate research to get it and there are only two possibilities, namely if it is not true, it means wrong.
Besides that, it is precisely with this volatile eel that several people, including one myself, am interested in being here.
and talking about that risk is a natural thing and actually it is a choice that needs to be taken from every activity that is carried out, not just in crypto or bitcoin.

I don't think it's a risky price, but you have to be good at holding bitcoin, which means don't panic when the bitcoin price drops, if you panic you will lose if the bitcoin price problem is basically unstable and no one can predict the bitcoin price.

Governments of the world don't like bitcoin at all. Since this is something that is challenging the decade old centralized financial system that is abusing consumers. Risk associated with government policies are valid and have heavy impact on btc price. See China decision about crypto currency and its impact on btc price.


I think its quite unfair to associate bad things like money laundering, ransomware etc with Bitcoin. As such things are happening with centralized fiat currencies before bitcoin was introduced. Even today major portion of money laundering goes with Fiat currency.

I think you mean there's the "risk of loss" when using Bitcoin. Unlike banks, people are responsible of protecting their funds against hacks or theft. That's one of the biggest disadvantages of a decentralized system. If you're willing to take the risk, then Bitcoin is for you. Otherwise, I'd suggest you to look elsewhere. Life is all about risks, so there's that.

For what I know, Bitcoin is not a perfect system. It has its flaws just like it's the case with Fiat today. I believe that the biggest risk of using Bitcoin is not the risk of loss, but rather the risk of volatility. Constant fluctuations in price makes Bitcoin a terrible currency for daily payments. You'll never know when your investment is going to go down the drain due to Bitcoin's unpredictable nature. It's more suitable as a long-term store of value than anything else. As long as Bitcoin remains decentralized, there should be nothing to worry about. Just my opinion :)

The risks you describe are too sharp, for beginners to make them hesitant not to use Bitcoin. For me a big risk for those who just speculate No knowledge of the market. Talking about risk Without laws governing Bitcoin this is not a problem because Bitcoin is not part of the government, meaning Bitcoin runs by itself. and it is highly unlikely that Bitcoin will disappear in the future.

They are risk of error and hacking as a digital currency and, cryptocurrencies are technical glitches, human error or hacking. They can be affected by discontinuation. Risk of scam because there are fraud people who misuses these .

Whenever we do have these kind of news specially bans then we cant really deny that it could really make some significant effects on the market which it is normal to have these kind of events.

As an investor then you should know on when to get in and when to get out.Asking about risk then this would be talking about losing bitcoin technically or due to scams or human error.

Risk in regulation too on where if its banned in your country then its just normal that you should avoid on letting them see that you do engaged with crypto.

We do have to know some of the risks that often occur, but it shouldn't be if it's like scaring ourselves into not being confident or being too pessimistic.
All of that must be responded to with experience and deeper insight, because in fact it is our race to take steps that are safer and better than all the possibilities that can occur related to certain risks.

The risk of crypto ban is a risk that can affect any user within the area where the ban is affected. This is being done by the government for some reasons which they this is best for them. The ban of bitcoin does not stop money laundering in any country, rather it stops the technological development of that country.

Another one is Regulation. If Bitcoin becomes regulated by the governmental bodies, the unique feature of Bitcoin wears away and the fun is ruined.

Ever having the thinking of investing into crypto currency is a risk, and making that investment means the risk has been completely accepted. As an investor, risk taking is what they do best.

I think the biggest risk for bitcoin and other cryptocurrencies for that matter is the risk of loss and price drop during that time if some people can't wait patiently they will sell and will result in them turning into a loss and that's very high risk but it's only high for newbies. However you need to be aware that when entering the crypto world. It is both unregulated and decentralized, there are many risks as follows: speculation, law, policy, money laundering, risk of substitution. Anyway, I am ready to take the risk to get the profit, because Bitcoin will show us the huge and potential profit value in the future.

This is normal, because any form of investment or business related to money must always be faced with a risk.
and it can't be missed because the risk here is included in the process of looking for profits in bitcoin.
As for the unpredictable price, it has indeed become the nature of bitcoin, which is indeed volatile. even so, basically with this nature bitcoin can be glimpsed and interested by many people

It seems more of a place in all honesty where criminals go to hide and run massive scams like gambling and selling items they never deliver on a black market.  The facts dont change for me I am not a stupid person these websites looked genuine to me but never delivered the mining hardware.  Im out over 14,000 canadian after these transactions.  It is a criminal safe harbor it seems for much of out of country transactions.  How do these people keep going on living a life of low pathetic moral character trying to sell items much cheaper accept bitcoin and never send the items out and remain anonymous stealing bitcoin.  What we need is a way to trace all bitcoin to a person that received it.  Then prosecute losers that steal bitcoin.

Not just Bitcoin, it is difficult to predict the future price of any virtual currency. However, the future of Bitcoin depends on the investor presence in the market. If the government of a country renews bitcoin Only then does the market change. Moreover, there is no other risk in investing in Bitcoin.

Do you think only your above statement is responsible for increasing and decreasing of price of Bitcoin? In real life, it depends on different factors. Only government can't control the price of Bitcoin. I think you know about the decentralization concept of Bitcoin. Yes, obviously some good news refers increasing the price of it.

Too pessimistic nature will hinder progress in us. Bitcoin always has risks, actually not only bitcoin, all types of investments must have risks but with different levels. Extensive insight or knowledge about bitcoin and cryptocurrencies is needed to know what to do when it comes to cryptocurrencies.
learn from the experiences of others who are starting to enter crypto so that you can avoid the same risks that can harm you.
The risk of using Bitcoin or other crypto can be minimized properly when we already know what to do.

It is our responsibility to take care of our funds, that is the truth. If we are too careless then that is not to wonder why we lost them. It is not the problem with the system but it was the problem for the one who owned it. That is how important to have knowledge about crypto, not just only knowing the basics but must have to dig deeper. If we are aware of what we have done and we did it legally that for sure there is no one will sue us, nor the government will apprehend us.

There's no need for any country to renew bitcoin or what. And despite the future is unknown for bitcoin, the majority including me look at it as an exciting future because the fact is that it's here to stay. With such market capitalization and demand, if the crypto market deteriorates then for sure that bitcoin shall stand last. And you're wrong about the risk, despite being the market leader, there will always be the risk in investing in bitcoin and that's what everyone mostly the newbies have to look before investing.

No if you just look at the value you will forget the real meaning of bitcoin.
The risk and also the unique feature of bitcoin is that it is "no regulation", Decentralization makes bitcoin invincible to exploitable weaknesses beyond psychology and panic from users. Only if it determines retroactively can availability be guaranteed.

must understand first that all work can be ascertained there is a risk side, as well as bitcoin trading can be ascertained that there will be a risk. how can we do so that the risk if it will happen is the least of everything we will do. for that everything must be addressed in a way not to panic and be patient and analyze well what we are going to do.

Finally, we have to admit that mental readiness and experience in attitude will determine everything we will do and it can't be avoided, keep learning and seek experience so as not to get caught in doubt when we are going to act.


yes, pessimism and lack of confidence and excessive panic because they cannot be patient in all actions are clearly very decisive. we are dealing with a fairly high risk when trading with bitcoin because the value in bitcoin is quite fantastic, so patience is needed and not panic, everything is clearly obtained from long-standing experience when doing that.

Bitcoin can obviously be risk-free when it comes to investing, but it takes a lot of money and isn't used for a long time.
If you start now making purchases and investing directly, you can be sure it will be safe if you wait every 4 years. when bitcoin halving occurs, bitcoin will increase higher than the current price. only that way can be without risk, but if our capital needs to increase quickly only by trading, of course there are risks.

Risk is everywhere even every platform Or feild . In bitcoin risk are scammers, frauds, wrong decision that can cause your goals. Sometimes these risks are benefits to being awareness of people.

That's right, my friend, every action has a risk. Those who dare to take risks, usually that person will be successful, only those who fail are afraid to take risks.

The risk of money laundering is what makes me cringe at how damaging it can be.
I generally use CEX but it would be an unfortunate situation if someone uses one of these platforms with money to launder it.
I have not yet discovered cases that have occurred that give me a reference of how these actors can work. In each exchange I am always waiting to know who I am trading my bitcoin with.

So fiat doesn't cringe you? You do know that people uses fiat currency to launder money. It's the most easiest way right now for people to launder money. Did you know that people even launders money with gift cards?
You use banks right? Do you know that banks are also used for laundering money?

If you are worried, then trade with verified users only. P2P trading with verified old users with good number of trades are the safest one for you.

Money laundering has already existed before Bitcoin, which comes with fiat? Maybe you will say that it has become rampant to such illegal activities since we can easily transfer BTC to the other without a trace from the authorities, I have to agree with that. And this is why some country leaders think that Bitcoin gives way to illegalities than helping the community. But the fact that there are several ways to make this money laundering, definitely we don't have the reason to totally put blame on Bitcoin.

When you talk about poor security performance, what exactly do you mean? Personally I think bitcoin is secure, and it is more secure than most of the cryptocurrencies you’re going to see (altcoins). And I have not had any issues while making use of bitcoin, nothing like wallet being hacked etc.

For your account to be hacked it’s likely going to be due to an act of carelessness or a mistake that resulted to leaking information that has to do with your private keys. So, that’s why you as a crypto user has to be careful when you’re making use of it, you have to make sure that you’re not giving out any information that will give people access to you.

Thank you for providing good education in this forum. This is what beginners need and read if they just joined bitcoin. So that they can understand what risks will be experienced apart from the many opportunities. This is in function so that there are no haters in the future who are created from their ignorance of the risks of playing bitcoin.

Well, every price especially in Bitcoin are volatile or the Crypto industry itself is much more volatile than the regular stock market, it's expected. Everyone "CAN" guess using the Trade analysis, every data in the graph could give something, maybe good or bad indications.

Every investment comes with risks, there is no assurance that every investment you have would generate ROI. It's a matter of how you will play your on the market using the information and data you have.

every investment there must be a risk but how do you minimize that risk. but the fatal thing is that when investing is wrong in choosing the blockchain where you invest so that whenever the blockchan has an accident or a scammer occurs, that's where you experience a loss.

Basically, the problem that we often face is the improper use of our speculation in determining the pace of Bitcoin. We as our own financial holders must determine when we should jump in to put our funds in and when we will withdraw our funds back.

Bitcoin is known to have a high risk, one of the biggest risks in Bitcoin investment is its volatility. Bitcoin price fluctuations are so fast that they can change in the blink of an eye. No one knows when the price of Bitcoin will soar or even plummet. Both Bitcoins are not protected by any entity, so if you lose your Bitcoin, the service provider or 'Bitcoin network' cannot compensate you for the loss, therefore it is important that you use trusted products and service providers to help you, just like when you choose a bank to keep your money safe.

If you plan to hold bitcoin for long term then it is not risky at all. Bitcoin price will grow over the period of time. Only if you are short term investor , then you may may to face some period where price may corrects to 30 or 40%. Also when more people use and adopt bitcoin, this volatility of bitcoin will be far less.

Bitcoin is more than just a decentralized coin, it is the symbol of all crypto and the first poof of a decentralized ledger based on the blockchain technology. It's limited supply of only 21M is what makes it valuable and the fact that so many miners, investors and supporters are devoted to its growth. Additionally, BTC is become the new 'gold standard' and naturally it's getting more and more attention as the digital alternative to asset preservation.

In other words, BTC is proof that people want decentralization and that the concept works better than the norm.

If you think the risk is too big as you describe makes everyone stop using crypto. Especially when it comes to law. I'm just worried that bitcoin users are just speculating, have no trading knowledge and techniques. And I believe cryptocurrency in the future will be more developed and its users will also be more and more.

The biggest risk of using Bitcoin could be the sudden and serious changes in the price. People who like to invest into Bitcoin should already be aware of this not to make irrational moves. Because panic sellers are always doing a huge mistake when they see Bitcoin price starting to decrease. They sell nearly all of their investment and it causes the market to have problems on fighting against the resistance levels.

every investment there must be a risk but how do you minimize that risk. but the fatal thing is that when investing is wrong in choosing the blockchain where you invest so that whenever the blockchan has an accident or a scammer occurs, that's where you experience a loss.
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Knowing a good project must also be mastered to minimize risk. Choose a good Exchanger and the fundamentals of the coin. Don't hesitate to ask the forum and know what's on your mind to get answers to your problem solving.

Most beginners do this. The feeling of not knowing, the control of self-immature emotions, being a factor for beginners is difficult to think rationally.

It's just that we also have to have a basis to take the right time to take action when there is a price movement that we consider a long-awaited opportunity. Though we do not know yet, whether it is a pure price, whether there is a cukong that is moving the price.

Volatility is a huge risk one must consider before going all in on Bitcoin. If you're planning to use Bitcoin as you would with Fiat, then I'd suggest you look elsewhere. But if you're planning to use Bitcoin as a long-term store of value, then you're in the right place.

As we all know, Bitcoin is not a perfect cryptocurrency. It has its flaws and weaknesses just like any other payment system. You should know about the risks involved when using Bitcoin in order to avoid many undesired situations in the long term. Not many people can bear with these risks, so they choose Fiat on top of crypto for daily payments. I wouldn't worry about this, as long as there's a loyal community behind the project. With decentralization and censorship-resistance in mind, Bitcoin will last for a very long time. Just my opinion :)

it still has a risk. everything has a risk in it.

true. even you are using bitcoin to store value, you will get scared mad whenever you bought 1 bitcoin worth $53k now and seeing it falls down to $3k in just a couple weeks. crazy crypto world, first thing first you should really understand the whole cryptocurrency concept and then you aren in the right place to get that risk along with the opportunity to get plenty advantages.

Anything can happen in the crypto world. rapid loss or rapid gain. therefore it is necessary to do an analysis before making a purchase.
Understanding the whole concept of cryptocurrency cannot be done overnight, it is necessary to explore the crypto world, it is necessary to analyze what is happening. Experience is very much needed.

For those who continue to study crypto, invest and trade. studying technical and fundamental analysis, they already have the knowledge to enter the world of crypto. The risk will still exist, but the risk can be handled properly when you have the key.

Stable token's price? it will always be stable and they won't move that much but there were a few of them that have already been out of the market because they fell to the stable price. You can search for a few of them and they're not really important and known at all but once upon a time, they're stable coins and with a stable price. That's the risk for using them if they have a central authority and this is far from having the risk of bitcoin.

All those who depend on assets do have their own risks, especially with bitcoin whose current value is very high so it must have maximum security, but the risk in making transactions for now does have very high security and we must store the private key properly. related to our wallets so that there are no problems with our assets, for the risk of speculation and money laundering we can handle it ourselves because it is difficult for the government to reach every transaction that happens so much.

Of course, it won't be easy to do that, especially for beginners, there are still a lot of people who don't understand and master TA and only rely a lot on news and speculation from other people.
and indeed this should be the first step and don't be bothered by placing a position whether it's a sale or purchase when we are sure then do that

All the points that are mentioned in the opening post is applicable with the stocks and other forms of investments. Maybe the investment apart from bitcoin will be having the legal support and the volatility issues. Just think of the bitcoin market years back and it's present position. The market is more mature enough that one can find it to be less risky investment. Earlier people had a belief the market will widen and will crash unexpected. Now it is proven that, even if it crashes there is sure recovery.

For money laundering points then I don't agree, if people save money in bitcoin with due to money laundering then he will take a big risk, as we know that bitcoin is a volatile investment so it is too risky to save money because it can drop tens of percent in a day.

It's true that this is more dangerous for yourself. People often discuss various kinds of risks according to their analysis. But the biggest risk is loss and in my opinion this is the most dangerous because if an individual bitcoin holder or he is a trader cannot control himself when experiencing a loss this will be a mental burden for them if he does not have the readiness. Even in my country there was someone who ended his life just because he suffered a big loss while trading in bitcoin.

Of all the risk lists I read above, in my opinion the most risky is speculation, such as the fact that currently occurs that bitcoin is more widely used for trading and stored in wallets so that it becomes a speculative investment, this makes us always have to be vigilant because I am worried about something. later the price can drop up to 50% or more in a day.as

every asset that we have can be ascertained that there will always be risk and it is impossible not to be at risk, I agree with you that the level of risk of each asset will definitely be very different. but it is certain that like bitcoin, ethereum which has a very high market capitalization is the most vulnerable. Indeed, more security is needed than usual and there are already many tools that can be used to be used as needed as well.

it is difficult to control bitcoin because it is made in such a way, no one can control it to regulate it because bitcoin works with a system that runs because trades have been carried out without anyone being able to intervene.
but the government is able to carry out regulations from the other side which can be done through standard rules that are able to reduce the abuse of bitcoin from corruption and the like.

Although there are many risks that we face in using bitcoin but it will all be easy for us to overcome if we work in accordance with the procedures that have been set, of all the risks you mentioned one of the most severe is that is against the law and this is very difficult for us to avoid, if a country has banned the use of bitcoin and all transactions that occur then we are very depressed if we have such a large asset but we cannot avoid it. Use it, and coupled with the sanctions given then this will be a big problem.

The risk of loss will always be there. It's up to you to minimize risks as much as possible by diversifying your investment into more than one cryptocurrency. Crypto is highly unpredictable and unstable at times, so you'd need to analyze the market periodically in order to stay financially secure. As long as you're able to manage the risk properly, you'll have nothing to worry about. Just my thoughts ;D

Just like the Government of China banning the whole cryptocurrency on their country, going against the law means you could face possible charges if caught, aside from the law, we face other risks that were mentioned by the OP and I think that with the amount of time we've spent doing crypto and Bitcoin we were used to facing these risks, it is risky but we do it because it's beneficial for us.

Which is why I tried to get a response and conversation going.  If china is about or was to the best my knowledge 70% of the hashrate contributers to bitcoin at least how is it the largest provider of cryptocurrency is banned in the very country they operate.  If it was banned wouldnt the chinese government just raid all the mining farms and arrest and prosecute and remove all the equipment.

If it was banned it would be stoped and since it isn't stopped then I guess it isn't banned so why are you saying its banned when its not you are the ones litterly creating it.

Or am I just to correct to continue to try and understand.

the main risk that comes to mind when investing in bitcoin is that you will lose money. due to bitcoin being a volatile investment, investing in bitcoin will not always yield gain but also losses, in fact your losses is much more likely to happen than your gain especially if you do not equip yourself the right knowledge when it comes to investing cryptocurrency. there are also different risks like using bitcoin for criminal purposes like money laundering and anonymous drug deals and such.

If you do not take risks in life, you will never succeed.So the bigger the risk you take, the more successful you will be at some point. Investing in Bitcoin here makes you feel a lot of risk. Yes there are a lot of big risks but if you do your luck favors you are short term In between you can become rich. So I would say that where there are more rickshaws, the chances of success are much higher.

The volatility is double edge sword, it moves in both directions. Its because of this volatility you can gain huge profits and vice versa. If you don't like volatility and don't wanna take any risk then you can invest in government schemes where profit is fixed but its very much proportional to inflation. Its your choice what you want, no pain no gain.

I pray I am never spied on by the owners of ShawCable or the Japanese Government who owns shawcable on Vancouver Island?  Foreign governments?

There is a risk in everything in the way of life. Life can never be successful without risking one's life. We use Bitcoin we know there are a lot of risks here.There is a lot of risk and a lot of money. Those who have been able to work with risk have settled their lives today.

if we talk about risk then every currency or other investment also has a risk. It is true that we must understand the risks involved and study them so that we do not fall into failure, but with that we should not be discouraged or afraid to enter the crypto world. the crypto world is not that scary if we can be more careful and vigilant. stay alert to what we do because we have control over our own assets so use them and manage them well so that later we can also benefit from them.

in business, risk must be a friend that we can control, as well as when we use bitcoin. of the many risks mentioned, I think it is the risk of volatility that often makes people tested their greed. many of them who run out of all their wealth just because they obey greed, and fall into gambling

How can you be friend with risk? that is a wrong perception mate because this will never be a friend instead lets treat this as enemy that we must defeat to Win over.

Greed is a attitude, you cannot change that because most of the people has this are born to be a greedy.
what ? how come that Gambling comes here? everything in world is gambling but this is another area about using bitcoin .

 :) most of all it'snt because everyone having a secured trading, assets and secured your on bitcoin and we can't stop the way of risk anything where have and risk mostly like in online and digital currency and also for trading the way,,, any where else much have a risk especially here in bitcoin soo need ti to be look up.

Every financial system has its drawbacks or risks from using it, and Bitcoin is no exception. The risk of using Bitcoin will certainly have an impact on the use of fiat currency which continues to decline, this cannot be avoided along with the increase in Bitcoin users in various countries. When compared to the risks of Bitcoin, I think there are more advantages to Bitcoin so there is no need to worry about those risks. There is a lot of speculation outside about the dangers of using Bitcoin about very high fluctuations, Bitcoin is a bubble but so far this speculation has not been proven and even now the price of Bitcoin continues to rise to its highest level.

Bitcoin's volatility is huge and that's very true.  In this right, I realize that not all crypto users can understand good management.  if the user can manage it well I think there is no downside to using bitcoin, everything will be an advantage