More trouble for the seemingly constantly under-siege bitcoin. The Securities and Exchange Commission has once again warned investors away from the digitally backed currency.
"A new product, technology, or innovation – such as Bitcoin – has the potential to give rise both to frauds and high-risk investment opportunities. Potential investors can be easily enticed with the promise of high returns in a new investment space and also may be less skeptical when assessing something novel, new and cutting-edge," noted the SEC's official statement.
This warning follows a prior Investor Alert which warned potential bitcoin enthusiasts against what was essentially a digital currency backed Ponzi scheme.
The SEC is, additionally, not alone in its warnings about Bitcoin. The Financial Industry Regulatory Authority has also recently issued an Investor Alert about digital currency, specifically on the speculation risk it presents. The North American Securities Administrators Association has also named bitcoin as one of its top ten threats to investors this year.
Bitcoin's price has recovered some over the last week, according to the PYMNTS Bitcoin Price Index. Before markets opened this morning, the price of bitcoin was hovering around $438.00--up from around $430.00 a week ago.
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