Finance Specialist Hakan Yıldırım: Bitcoin's reliability is risky

The reliability of Bitcoin, the virtual currency, has become one of the most important research topics. Stating that Bitcoin's reliability is risky, Finance Specialist Hakan Yıldırım said: “Even if countries oversee the Bitcoin system well, the absence of a legal institution behind the system will not be quite helpful in securing the investments of individual investors.”

With increasing demand, Bitcoin has become more and more widespread in many countries and has become a virtual currency. In addition to competing against currencies like the dollar, pound and euro, it has also been an alternative to gold, an indispensable investment tool for centuries, so that the number of Bitcoin in circulation is now 17 million 891.

Stating that the reliability of Bitcoin has become an important research topic, Finance Specialist Hakan Yıldırım said: “The biggest risk that individual investors may be exposed to is that Bitcoin is not offered to the market under the guarantee of a certain central bank and therefore there is no addressee. Every country issues its money through its own central bank but this is not the case for Bitcoin.”

Saying “Many sources mention the risk that Bitcoin investments may face. However, the concept of risk here is directed to the question ‘what if Bitcoin price falls?’ after the investment in Bitcoin.”, Istanbul Gelisim University Assist. Prof. Dr. Hakan Yıldırım stated as follows:

“Namely, the investor looks for an answer to the possibility of losses in the principal. However, the main risk is the reliability of Bitcoin as an investment instrument. In other words, the biggest risk for investors is the possibility of seeing the page not accessible when they enter the panel to buy and sell it. When investors face with such a situation, they will not be able to apply to any official institution or they will lose their investments which are not guaranteed by the state.”

IT IS FORBIDDEN IN SOME COUNTRIES

Reminding that on the other hand, the financial activities of the cartels engaged in illegal activities were carried through Bitcoin system, Hakan Yıldırım said: “This has put some developing countries in a difficult position and has become a major risk for them. Therefore, some countries have banned the Bitcoin system to prevent the financial side of the illegal activities of it. These countries are Bolivia, Bangladesh, Algeria, China, Ecuador, Indonesia, Cambodia, Nepal, Pakistan and Iceland.”

Stating that Bitcoin can be a risky investment tool for investors and countries, Yıldırım said: Even if countries oversee the Bitcoin system well, the absence of a legal institution in the background will not be helpful in securing the investments of individual investors to get under guarantee. On the other hand, it is not possible for governments to control the financial side of illegal activities.”