I do not invest in anything which is not regulated, no matter how high the returns may be. Truth is, if the returns are so very high, these companies do not need to get you and me. They would have gotten government’s statutory funds to invest in them. Much easier, simpler and faster and everyone is happy since the statutory funds would then pay you back in yearly profits. Right? Totally wrong! In Hong Kong, a report said that due to a scam, ‘investors’ in a Hong Kong based bitcoin trading company may have losses totalling HK$3 Billion. (RM1.3 Billion). Aren’t Hong Kong people more financially savvy than perhaps KLites? I think when it comes to blind greed, it’s the same in every country.
An estimated 3,000 has fallen for this scam with the cheated amount up to HK$3 billion. One investor said she was promised that her investment of HK$1.3 million would be recouped within four months. I have written about Bitcoin some time ago. Read here: Buying property with BITCOIN? Okay, assuming someone told you to invest RM100,000 and tells you that you will get a 200% annual return, would you believe him? Anyway, value of this un-regulated currency which soared to over US$1,200 (RM4,270) in 2013 has gone down to around US$285 (RM1,104) in January 2015. If you think it is dying, think again. Google for Bitcoin news and you would understand that it’s still very popular. In fact Google is said to be introducing Bitcoin in its new payment system.
Question. Would I buy Bitcoin? No. What if it becomes a regulated entity in the financial world? Well, if it is proven to be a regulated one, sure. Can always buy some for fun. Fun means if up, use the returns for a great dinner. If down means forget the bad chapter. Of course, for now, bitcoin is not the main threat to the usual buyers. Scams are. Scams using bitcoins just happen to be one of them. They say, a fool and his money are soon parted. I would say, when you are greedy, you can be cheated easily. Always remember that if it is too unreal, it probably is really unreal. No matter how many times this is reported, there would always be new cases of people being cheated. That’s for sure. Just make sure it is not you or me.
written on 14 Feb 2015
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