Lawmaker Warns Public Against Investing in Bitcoins

For Filipinos hoping to cash in on the bitcoin craze, think twice and hear this warning of lawmaker first before putting your hard-earned money in cryptocurrency.

As the price of bitcoin is surging to $10,000 US dollar, the chair of the house banks and financial intermediaries committee recently warned Filipinos who hope to cash in on this bitcoin craze.

In a recent news reports, Eastern Samar Rep. Ben Evardone urges Filipinos not to put their hard-earned money by purchasing bitcoins in hope of making easy profits.

During the hearing of the committee on banks and financial intermediaries, Rep. Evardone claimed that that officials and representatives from the Bangko Sentral ng Pilipinas, Securities and Exchange Commission and other banking sectors are among those who are advising the public against investing in such bitcoin or any other virtual currencies.

Rep. Evardone claimed that bank gurus cited that investing in bitcoin and the likes is very risky and has no safeguards.

He further noted that investing in bitcoin is indeed tempting that is why a lot of Filipinos are getting interested into putting all their savings and even their retirement funds into bitcoins and other cryptocurrencies, without realizing that they could lose everything in just one glimpse.

“Cryptocurrencies like bitcoin are a promising low-cost remittance platform for Filipino workers sending their earnings home but they are extremely risky investments due to lack of regulatory protection for consumers,”

Rep. Evardone

Actually, bitcoins and other cryptocurrencies are not supported by a bank, any circulation unit in circulation, or any asset of concrete value that offer some point of security for its buyers.

“Investors stand to lose everything overnight if exchange platforms for cryptocurrencies shut down or when the consumer’s virtual wallet containing confidential information is hacked or stolen,”

Rep. Evardone

In February, 2014, the biggest hacking incident occurred, losing $460 million worth of bitcoins in Japan in the ill-famed Mt. Gox case.

Meanwhile, just early this month, another cryptocurrency had been the subject of a hacking incident resulting in a loss of $31 million.

“Until enough safeguards are put in place, investors would be well-advised to heed the admonitions of the Bangko Sentral and the Securities and Exchange Commission to put their money in safer investments,”

Rep. Evardone

Aizelle Joe

Philippines

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