In this April 3, 2013 photo, Mike Caldwell, a 35-year-old software engineer, holds a 25 Bitcoin token at his shop in Sandy, Utah. Bitcoin is an online currency that allows people to make one-to-one transactions, buy goods and services and exchange money across borders without involving banks, credit card issuers or other third parties. AP Photo
Filipinos hoping to cash in on the bitcoin craze were warned by the chair of the House banks and financial intermediaries committee on Wednesday about the risks of investing in cryptocurrency, as the price of bitcoin surged to $10,000.
Eastern Samar Rep. Ben Evardone urged Filipino investors not to part with their hard-earned money by buying bitcoins in the hope of making quick profits.
At the hearing of the committee on banks and financial intermediaries Tuesday, officials from the Bangko Sentral ng Pilipinas and the Securities and Exchange Commission, and representatives from the banking sector, “were one in advising the public against investing in bitcoin or any other virtual currency,” he said.
“They said it is very risky, speculative and [has] no safeguards,” Evardone said in a statement.
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The price of bitcoin hit the $10,000 mark on Wednesday.
Evardone said Filipinos might get tempted into putting all their savings and retirement funds into bitcoin and other cryptocurrencies “without realizing that they could lose everything in one drastic plunge.”
