http://blogs.wsj.com/totalreturn/2014/08/12/five-questions-about-the-bitcoin-crackdown/Bitcoin is an online currency that can be traded between users or used to buy goods and services from merchants who agree to accept it. Unlike traditional currencies, bitcoin isn’t backed by a central government.
The CFPB highlighted the risk of hackers attacking security systems to steal funds, a lack of protections from fraud and massive fluctuations in the price of digital currencies. The agency also said the cost of using virtual currencies can be high, given exchange rates.