Filtered By: Money
Bitcoin trading, though a relatively new industry, can be an alternative high-risk investment that holds the promise of high returns given its scarcity.
Bitcoin is the most risky and volatile investment product in the world, MetisEtrade Inc. CEO Justin Jung told reporters on Thursday.
"It is only aimed for those investors who have big appetite for high-risk, high-return investments," he said.
"If you're a conservative investor then this is not a product you want to get involved," he added.
The bigger the volatility, the higher the demand for bitcoins, Jung noted.
"If we consider that most currencies have an average of 20 to 30 percent volatility yearly, Bitcoin can have that volatility in a week," he said.
Only up to 21 million units of bitcoin can be created until 2040. Currently, there are 12.6 million units available in the market.
Despite issues plaguing foreign bitcoin exchanges, MetisEtrade will deal in bitcoin starting March 1 to give investors a new product.
"It’s both bad and good. All this bad news is actually from the Bitcoin exchange. However, there’s been no scandals coming out from Bitcoin dealers," Jung said.
On Thursday, Manhattan Attorney Preet Bharara has sent subpoenas to Tokyo-based Mt. Gox, other bitcoin exchanges, and businesses that deal in bitcoin to seek information on how they handled recent cyber attacks, Reuters reported.
This came after Mt. Gox's website crashed and officials went unreachable Tuesday following a steep drop in the value of the virtual unit compared with other bitcoin exchanges.
There maybe a strong market for bitcoin abroad but not so much in the Philippines, Metropolitan Bank & Trust Company research head Ildemarc Bautista said in a separate interview by phone.
"Most Filipinos are still risk-averse to e-commerce, how much more for e-currency," he said.
"Preference locally would still be on hard currencies but it doesn't mean na wala dito. Bitcoin is very speculative and a bit technical for Filipinos," he added.
A couple of bitcoin companies have recently opened – Bitcoin Pinoy and BuyBitcoin.ph – which offer alternative to money transactions using digital cash and other Bitcoin-related services. – VS, GMA News