By: Peter Christian
With cryptocurrencies like Bitcoin continuing to attract headlines, the Office of Securities Commissioner Matt Rosendale reminds Montana investors to be cautious about such investments.
Spokesman Kyle Schmauch said now that Bitcoin currencies are becoming more mainstream, prices have seen wild fluctuations.
Cryptocurrencies are a medium of exchange that are created and stored electronically in the blockchain, a distributed public database that keeps a permanent record of digital transactions. Current common cryptocurrencies include Bitcoin, Ethereum and Litecoin. Unlike traditional currency, these alternatives have no physical form and typically are not backed by tangible assets. They are not insured or controlled by a central bank or other governmental authority and are subject to little or no regulation.
“Commissioner Rosendale is advising investors to approach such investments with great caution,” Schmauch said. “If you are unfamiliar with cryptocurrencies and the technology that goes into them, it’s probably not a good idea to invest in them until you can understand what you’re getting into. Cryptocurrencies are a very exciting new technology with a lot of potential, but we are also seeing a lot of fraudulent actors trying to trick Montanans into purchasing what they really don’t understand.”
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