We see it as our obligation to inform you comprehensively about the risks of purchasing Bitcoin or any other digital assets. Although Bitcoin has found worldwide distribution, the technology is still classified as an experiment. Investing in bitcoin and digital assets in general is therefore considered a high-risk investment and a total loss of capital is possible.
We therefore recommend that you make a purchase decision only after weighing all risks and careful consideration. If you have any doubts, seek advice from an independent and knowledgeable party. Also, check if your financial situation and risk tolerance are suitable for buying and selling bitcoins.
Also note these specific risks:
- The Bitcoin price is very volatile. The possibility of high price fluctuations is given at any time, can result in significant loss.
- Unlike normal savings, there is no deposit insurance.
- You are responsible for the safe storage of your Bitcoins. In case of loss or theft of your Bitcoins there is no possibility to restore them.
- Even in the case of a crisis, there is no authority that could take compensatory measures to stabilize the Bitcoin value or issue more units.
- Bitcoin trading is predisposed to speculation bubbles and absolute loss of confidence that could affect supply and demand and cause a collapse of the whole bitcoin market.
- There are still no unified regulatory measures for Bitcoin. The decentralized nature of the network makes technical access for state institutions extremely difficult, since there is no central server that could be monitored or shut down. However, there is a risk that Bitcoin will be declared illegal in some countries. If Bitcoin were banned, it would technically still be possible to trade and transfer Bitcoin via the Internet, but as a mean of payment for legal transactions, they could no longer be used or could only be used to a limited extent.
- The emergence of other digital currencies could weaken Bitcoin. Bitcoin is an open-source project, the software is accessible and changeable for everyone and there are already other digital currencies based on the Bitcoin protocol or similar ones. Although these currencies are way less common than Bitcoin, there are exchange rates and swap exchanges for them. One of these currencies or a completely new digital asset could outperform Bitcoin in future, which could lead to a massive loss of value.