Investors warned of bitcoin risks

BANGKOK, December 20 (TNA) - The Kasikorn Research Center (KRC) warns investors of bitcoin risks, as the value of the digital currency has been inflated by speculators to a bubble level. KRC Managing Director Chao Kengchon told journalists on December 19 that the speculation of bitcoin has been considerably although its investment has no economic fundamentals and value, as central banks of several countries, including the Bank of Thailand (BOT), have not certified the digital currency as the legal medium of exchange and payment. Chao cautioned that people should, thus, be very careful by thoroughly look into pro and con of bitcoin before investing or increasing their investment in the cryptocurrency. The KRC executive said, however, that the bubbling condition of the bitcoin investment will not affect the world economy although it affects personal security, as the size of bitcoin investment remains small when compared with the investment in other debt instruments and securities. The KRC executive suggested that BOT and the Thai Securities and Exchange Commission (SEC) publicly issue warning and advisory statements for bitcoin investors to prevent or reduce their risks from the digital currency investment and speculation. Bitcoin, a form of digital currency, has been created and held electronically. Unlike baht or US dollars or other currencies, bitcoin is not printed, but the digital currency is produced by people and no one, thus, controls it. (TNA)