• Press Releases
    • Submit a press release
    • Read All
  • Contact us
Advertise
Bitcoinist.com
No Result
View All Result
  • Bitcoin
    • News
    • Price
    • Businesses
    • Acceptance
    • Technology
    • Investment
    • Regulation
    • Reviews
    • All Bitcoin News
  • Altcoins
    • News
    • Price
    • Ethereum
    • Ripple
    • Litecoin
    • EOS
    • NAGA
    • All Altcoin News
  • Tech
    • Blockchain
    • Security
    • FinTech
    • Price
      • Bitcoin Price
      • Ethereum Price
      • Binance Coin Price
      • Litecoin Price
  • Industry
    • Industry News
    • Press Releases
  • How to
    • Buy gift cards/mobile Top Ups with Cryptos
    • What Is Bitcoin?
    • Best Bitcoin Wallet
    • Bitcoin vs Ethereum
    • Why Use Blockchain Technology?
    • Bitcoin Cash ABC vs. Bitcoin Cash SV
    • How to Buy Cryptocurrency
    • How to do Crypto Gambling
      • Crypto Casinos
        • Ethereum Casinos
        • Solana Casinos
        • LiteCoin Casinos
        • DogeCoin Casinos
        • Live Crypto Casinos
        • New Casinos
        • Instant Withdrawal Casinos
        • Cash App Casinos
        • No KYC Casinos
        • VPN Casinos
        • Offshore Casinos
          • Crypto Casinos IT
          • Crypto Casinos ES
            • All Guides
          • Crypto Casinos JP
          • Crypto Casinos SG
          • Crypto Casinos MY
          • Crypto Casinos KR
          • No GAMSTOP Casinos in UK
          • No Cruks Casinos NL
      • Crypto Betting
        • No ID sportsbooks
    • Play Crypto Games
      • Crypto Poker
      • Crypto Slots
      • Crypto Blackjack
      • Crypto Crash Gambling
        • Aviator Sites
      • Plinko
    • Bitcoin Mining
    • Best Bitcoin Brokers
    • Best Bitcoin Forex Brokers
    • How To Earn Bitcoin
    • What is Facebook Libra?
    • Ripple and XRP: The Complete Guide
  • Events
  • Play Games
Breaking News: Ripple CTO Steps Down, Accepts New Offer – What You Need To Know
  • Bitcoin
    • News
    • Price
    • Businesses
    • Acceptance
    • Technology
    • Investment
    • Regulation
    • Reviews
    • All Bitcoin News
  • Altcoins
    • News
    • Price
    • Ethereum
    • Ripple
    • Litecoin
    • EOS
    • NAGA
    • All Altcoin News
  • Tech
    • Blockchain
    • Security
    • FinTech
    • Price
      • Bitcoin Price
      • Ethereum Price
      • Binance Coin Price
      • Litecoin Price
  • Industry
    • Industry News
    • Press Releases
  • How to
    • Buy gift cards/mobile Top Ups with Cryptos
    • What Is Bitcoin?
    • Best Bitcoin Wallet
    • Bitcoin vs Ethereum
    • Why Use Blockchain Technology?
    • Bitcoin Cash ABC vs. Bitcoin Cash SV
    • How to Buy Cryptocurrency
    • How to do Crypto Gambling
      • Crypto Casinos
        • Ethereum Casinos
        • Solana Casinos
        • LiteCoin Casinos
        • DogeCoin Casinos
        • Live Crypto Casinos
        • New Casinos
        • Instant Withdrawal Casinos
        • Cash App Casinos
        • No KYC Casinos
        • VPN Casinos
        • Offshore Casinos
          • Crypto Casinos IT
          • Crypto Casinos ES
            • All Guides
          • Crypto Casinos JP
          • Crypto Casinos SG
          • Crypto Casinos MY
          • Crypto Casinos KR
          • No GAMSTOP Casinos in UK
          • No Cruks Casinos NL
      • Crypto Betting
        • No ID sportsbooks
    • Play Crypto Games
      • Crypto Poker
      • Crypto Slots
      • Crypto Blackjack
      • Crypto Crash Gambling
        • Aviator Sites
      • Plinko
    • Bitcoin Mining
    • Best Bitcoin Brokers
    • Best Bitcoin Forex Brokers
    • How To Earn Bitcoin
    • What is Facebook Libra?
    • Ripple and XRP: The Complete Guide
  • Events
  • Play Games
Bitcoinist.com
No Result
View All Result
Breaking News: Ripple CTO Steps Down, Accepts New Offer – What You Need To Know

SEC warning to Bitcoin: “Scam, Ponzi Scheme”

Bitcoinist
by Bitcoinist
8 years ago
·
Posted in Legislation, News, Reviews
Trusted Editorial content, reviewed by leading industry experts and seasoned editors. Ad Disclosure

On May 7th 2014, SEC, or the U.S. Securities and Exchange Commission, released a warning about the dangers of Bitcoin, such as calling Bitcoin a Ponzi scheme. Now whether or not that is true is up for debate, and I believe many users would voice strongly against that.

That doesn’t mean the SEC was full of gibberish however, such as stating that potential investors must watch out for scams that try to entice with high returns in a new market.

SEC also states that the use of Bitcoin may decrease the chances of you recovering your money lost due to theft due to the unique nature of Bitcoin, such as the ability to use it globally.

Bitcoin, with the option to use mixers to further anonymize transaction, exchanging to different cryptocurrencies, etc. makes Bitcoin transactions difficult for federal authorities to track.

Its decentralized nature, along with its international use, makes it a challenge to pinpoint individual transactions as well. Since there is no central figure, and it can be used globally, governments must work together to track transactions. International laws may conflict each other, for example Bitcoin might be legal in one country vs another, and this will most likely cause more hurdles they must pass through.

The ability to encrypt wallets and the fact that they are held by the user of that wallet makes it tough for the government to seize the Bitcoins, once they have finally found the thief. A thief could just as easily delete the wallet, or transfer the Bitcoins to other addresses and cause the search to start again.

SEC also discourages potential investors from investing in Bitcoin and other virtual currencies for a multitude of reasons, with some listed below.

One reason is that Bitcoin is not insured. Banks are insured by the FDIC and brokerages are insured by the SIPC, Bitcoin unfortunately does not enjoy the same kind of protection.

Bitcoin, with its history of volatility, famously peaking at around $1000, then crashing to the $500 – $600 range soon after that is an excellent example of how varied the exchange rate of Bitcoin can become. This makes Bitcoin not a good option for new investors, and even experienced ones should do extensive market research before making any lasting decisions.

Due to the new nature of Bitcoin, security may not be of that of a bank or other financial institution with decades of experience. This may cause glitches, vulnerabilities, or weaknesses that an intruder can exploit. Most famously the shutdown of Mt. Gox, with thousands of Bitcoins being lost due to what Mt. Gox says as a “transaction malleability error”.

Bitcoin, with its stories of early investors making millions while Bitcoin was just $1, or even less. Now investors have caught whiff of this, they want in. That has also caused the spike of scams and Ponzi schemes as well. Bitcoin can be a rewarding investment, but do your research and take everything with a grain of salt.

 Written By: Nigel Dollentas A.K.A. Precrime3

Editorial Process for bitcoinist is centered on delivering thoroughly researched, accurate, and unbiased content. We uphold strict sourcing standards, and each page undergoes diligent review by our team of top technology experts and seasoned editors. This process ensures the integrity, relevance, and value of our content for our readers.
ShareTweetShareShare

Sign Up for Our Newsletter!

For updates and exclusive offers enter your email.

I consent to my submitted data being collected and stored.
Bitcoinist

Bitcoinist

Follow

Bitcoinist is the ultimate news and review site for the crypto currency community!

Full Profile

Related Posts

World Liberty Financial

World Liberty Financial: Trump Jr. Defends Company Against Political Accusations

1 hour ago
crypto

Eric Adams, New York’s Crypto-Friendly Mayor, Won’t Seek 2nd Term

3 days ago
India

India Cracks Down: Stricter Rules To Combat Rising Digital Payments Fraud

6 days ago
Philippines

Philippines Authorities Move To Put Key Public Records On Blockchain After Mass Protests

1 week ago
Nepal

Jack Dorsey’s Bitchat Becomes Lifeline For Nepalis In Protest Crisis

3 weeks ago
PrimeXBT: Empowering Traders in Crypto Space

PrimeXBT: Empowering Traders in Crypto Space

3 weeks ago
Please login to join discussion

Premium Sponsors

Press Releases

  • MoonBull Presale Explodes with over 11,800% Projected ROI as Uptober Sends the Market Soaring

    MoonBull Presale Explodes with over 11,800% Projected ROI...

    27 minutes ago
  • 狗狗幣引領『Uptober』Meme...

    6 hours ago
  • ตัวละคร Snorter ขนฟูโต้คลื่นบนเซิร์ฟบอร์ดสีชมพู

    จับตา Uptober!...

    1 day ago
  • Tapzi Delivers Strategy-Based Web3 Gaming, Setting It Up As One of 2025’s Best New Crypto.

    Tapzi Delivers Strategy-Based Web3 Gaming, Setting It Up As...

    1 day ago
  • най-добрите криптовалути

    Най-добрите криптовалути за...

    2 days ago

Bitcoin news portal providing breaking news, guides, price analysis about decentralized digital money & blockchain technology.

Bitcoin

  • News
  • Price
  • Businesses
  • Acceptance
  • Technology
  • Investment
  • Regulation
  • Reviews

Altcoins

  • News
  • Price
  • Ethereum
  • Ripple
  • Litecoin
  • EOS

Categories

  • Blockchain
  • Security
  • FinTech
  • Technology
  • Trending
  • Breaking News
  • Press Releases
  • How to

About Us

  • Advertise
  • Contact us
  • Editorial Policy
  • Privacy Policy
© 2025 Bitcoinist.com. All Rights Reserved.
  • Bitcoin
    • News
    • Price
    • Businesses
    • Acceptance
    • Technology
    • Investment
    • Regulation
    • Reviews
    • All Bitcoin News
  • Altcoins
    • News
    • Price
    • Ethereum
    • Ripple
    • Litecoin
    • EOS
    • NAGA
    • All Altcoin News
  • Tech
    • Blockchain
    • Security
    • FinTech
    • Price
      • Bitcoin Price
      • Ethereum Price
      • Binance Coin Price
      • Litecoin Price
  • Industry
    • Industry News
    • Press Releases
  • How to
    • Buy gift cards/mobile Top Ups with Cryptos
    • What Is Bitcoin?
    • Best Bitcoin Wallet
    • Bitcoin vs Ethereum
    • Why Use Blockchain Technology?
    • Bitcoin Cash ABC vs. Bitcoin Cash SV
    • How to Buy Cryptocurrency
    • How to do Crypto Gambling
      • Crypto Casinos
      • Crypto Betting
    • Play Crypto Games
      • Crypto Poker
      • Crypto Slots
      • Crypto Blackjack
      • Crypto Crash Gambling
      • Plinko
    • Bitcoin Mining
    • Best Bitcoin Brokers
    • Best Bitcoin Forex Brokers
    • How To Earn Bitcoin
    • What is Facebook Libra?
    • Ripple and XRP: The Complete Guide
  • Events
  • Play Games
Advertise

© 2025 Bitcoinist. All Rights Reserved.

This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy Center or Cookie Policy.