Although Bitcoin can be circulated around the world and transactions are convenient. But he still has the following risks.

1. The popularization among the people is not high.

Bitcoin is a type of virtual currency. Its actual development time is relatively short, and because its transaction fee is cheaper than foreign exchange. At this point, our country has actually not explicitly recognized the existence of virtual currencies such as Bitcoin. Precisely because no one promotes Bitcoin, and the development time is relatively short, its cognitive threshold is relatively high. At the same time, due to the public’s incomprehension of Bitcoin, this also creates a lack of trust. From the traditional financial industry point of view, Bitcoin is a virtual currency because it does not have a certain issuer. Based on this, Bitcoin's value will eventually return to zero. At this point, Bitcoin has a certain risk of returning to zero.

2. Risk of illegal use.

Bitcoin exists anonymously, so it is basically not regulated by governments. Precisely because there is no supervision, many criminals use Bitcoin for transactions, in illegal fields such as gambling. , Bitcoin has a wide range of uses. The impact of this convenience is very bad. Once you invest in Bitcoin and are used by criminals, the consequences are very dangerous. Because we don’t know whose hands the Bitcoins we trade come from, and we don’t know who we are sending money to. If we accidentally engage in illegal activities, the negative impact on individuals will be very great.

3. Disapproval of commercial applications.

As mentioned in the first point, Bitcoin is not recognized by most countries. If, because of the first and second points, most countries boycott Bitcoin and crack down on illegal activities using Bitcoin, then the business prospects of Bitcoin will suffer a huge blow, and it will become more and more serious at this time. Many people lose money, and once the money-losing effect spreads, Bitcoin will depreciate accordingly, and it will also cause a chain effect, causing more and more ordinary people to stop using Bitcoin, which will also cause the first point. That said, the value returns to zero.