CFPB Warns Consumers About Bitcoin

You know you’re in trouble when the CFPB issues a consumer advisory. And, especially so when they start the advisory out with “What’s this ‘to the moon!’ business on the internet about?”

But that is exactly what the CFPB’s advisory about bitcoin and other virtual currencies says. They are encouraging consumers not just to stay away, but to lodge complaints so that, with data, they can really determine the extent to which this is a risk.

Until then, they’ve flagged a few of them, which does not paint a particularly rosy picture of bitcoin. They say that the risks of using virtual currencies include:

•       They are targets for hackers to steal funds,
•       They’re more expensive that other forms of payments;
•       The bad guys use them to cheat people
•       If consumers use them and something goes wrong, good luck recovering your money.

Gee, sounds like they might have read David Evans’ bitcoin series.