Bitcoin Horror Stories Every Crypto Investor Needs to Read
We are sure that you’ve been to a movie theater to see a scary movie. It’s fun to watch people running scared and wielding knives and all that. You want to be terrified and leave wondering if something is going to jump out at you.
In a sense, you want that thrill where you want to sleep with the lights on because it’s exciting and makes you feel more alive. We all have those moments, but when the lights do come on, you’re completely fine again and don’t keep that fear with you for long.
The same can be said for cryptocurrency and blockchain tech. It is sort of scary, and investors aren’t sure about it. You’ve probably heard all those financial issues and wonder why people even consider investing in it. However, the newness of such a financial framework and technology is really what scares you so much.
Still, we aren’t going to say that it’s not warranted. Many people have Bitcoin horror stories that have scarred them for life, and it’s important to learn about them so that you don’t make the same mistakes yourself.
Technology Is Difficult
There is no way around it; technology is a challenge at first. You may not remember when you learned to walk, but you may have seen videos or heard your parents talk about it. When you were learning, you fell down and probably hurt yourself. A trip to the emergency room may have been warranted, too.
The same applies to technology. People try to take advantage of it whenever they can. Others want to adapt to it and use it for everything. There are bound to be hiccups on the way. Newer innovations are advancing, evolving, and popping up out of nowhere.
You can definitely expect to read some horror stories along the way. Though we don’t want to play down the risk, you shouldn’t base your inability to commit to cryptocurrency on those stories alone. Yes, you should be smart and cautious about the technologies you choose to implement.
The Crypto Company Founder Dies
While you want your crypto to be unhackable, that poses a problem when the CEO passes away and takes the password to the whole shabang with him. With that, it froze $135 million cryptocurrencies, so they were untouchable, and the investors weren’t too happy.
Though this happened in Canada, it’s not to say that it can’t happen anywhere. It’s always good to know the team behind the crypto and the platform you use to buy and trade. There was a silver lining: The IIROC and CSA (regulatory bodies) chose to focus on regulating cryptocurrency because of this horror story.
Investment Regulations
Most securities and investments are already hard to get into. However, when you add volatility to the digital atmosphere, it can become even more complicated.
One startup ICO wasn’t paying attention to the Swiss regulations and ended up in a lot of trouble!
Envion AG, at one point, had over 90 million francs, which were paid out to 37,000 investors in exchange for some tokens that resembled bonds. However, the bonds weren’t licensed, so they were illegal based on the Swiss rules. On top of that, issuance conditions weren’t equal for all the investors, and there was no audit process.
Though Envion didn’t mean to misappropriate the funds, it still did so, which was against the law.
What Cryptocurrency Did to All Global Banks
Most financial institutions and banks don’t like using digital currency and stay far away from it. They’re skeptical for a good reason. While cryptocurrency is becoming universal, it’s not perfect. Anyone can use it, trade it, and save it because it’s on the internet. That’s ultimately why banks are very scared of it.
Since crypto isn’t a substitute for cash yet, many people have yet to invest in it. You also have countries with their own currencies, and that’s how it’s been for many decades. Now, with Bitcoin and the blockchain, cryptos are here to shape up the system that’s been here for so long. Therefore, the Basel Committee issued disclaimers.
We all know that banks have limited exposure to digital assets. However, there’s a possibility of terrorist financing and fraud. While thieves can also break into the bank and do all that, most cybercriminals like that they just plug into the internet (dark web) and go from there.
In a sense, the committee was just warning banks of this presence. However, we’re pretty sure they already knew about it. Though it’s not super scary, the committee did make it appear more horrific than it really is.
Why You Should Be Aware but Not Scared
We aren’t telling you all these horror stories to scare you away from Bitcoin and other cryptocurrencies. In fact, the opposite is true! When you are aware of what’s going on out there, you can protect yourself better from it.
There has been speculation that each country is going to adopt a crypto model and create its own coins. We aren’t sure that’s ever going to come to fruition, but it’s not impossible.
The fact is that cryptocurrency is decentralized, which means anyone can leverage it from anywhere. They can create new coins, invest in them, trade them, and so much more.
Right now, things appear to be in the catch-22 motion. Burgeoning technology is still in development, cryptocurrency isn’t mainstream yet, and people are fighting over whether to regulate it or not.
However, you don’t have to be scared with such cryptocurrency assets available if you choose the right platform. SEC and FINRA regulations are still new to the crypto world, but INX is paving the way.
Most people have issues with crypto and have those fears because cryptocurrency isn’t regulated. Anyone can use it, and their identities remain anonymous. While that can seem good, it also means you could be trading Bitcoin with a sex trafficker, or your money could be going to a terrorist organization.
The goal of these Bitcoin horror stories is to show you that issues can arise. It’s best to be thorough in your research and know about cryptocurrency before stepping into the game.
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