PETALING JAYA: Do not trust something you cannot see or touch.
This is the advice from certified financial coach and founder of Abacus Advisory Sdn Bhd Carol Yip who reminded investors to do their research and not be influenced by get-rich-quick online trends.
“It’s convenient because you’re just clicking on a mouse and supposedly making a lot of money in a very short time.
“But investing in unregulated, virtual investments is dangerous and very risky. A good investment must be something ‘solid’ like property,” she said.
Whitman Independent Advisors Sdn Bhd managing director Yap Ming Hui advised the public not to invest in virtual currencies which have “no value in the real world”.
The personal financial management coach and author said people invested in virtual currencies thinking that these would be widely accepted as payment.
“Basically, a guy behind a computer created virtual currencies as an alternative to real money and gave value to the currency himself. But no one else except its users recognise this virtual value. In reality, it’s a false sense of value.
“Unlike the value of gold, which no matter how speculative, is recognised globally, virtual currencies are not,” he added.
Symantec Corporation security response senior manager Eugene Teo warned users storing Bitcoins to prioritise protection measures as the security of the online platform was weaker compared to traditional online banking systems.
“The element of risk is inherent in all investments, be it in traditional or modern financial products.
“But as the concept of a digital currency is still in its infancy, there needs to be wider regulation on Bitcoin’s usage as well as to manage its price volatility,” he said.