Regulators advise caution on Bitcoin

If there’s a lesson to be learned from the Bitcoin furor, it’s that just because an investment is trendy and cool, that doesn’t mean you should abandon all common sense and sink your money into it. 

“Digital currencies right now are very, very trendy,” said Joseph Rotunda, director of enforcement at the Texas State Securities Board. “There’s a lot of buzz about them. It’s really easy to look at the benefits, the positives of digital currencies, without really appreciating these risks.

“Those risks can wipe out the entirety of their investment in not months, not weeks, but in a matter of moments.”

Digital currencies such as Bitcoin are essentially long lines of computer code that might be encrypted and sent or received without involving a financial institution or government agency.