This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Which Way Will Bitcoin Move Next?

The U.S. Securities and Exchange Commission issued an investor alert regarding bitcoin. The agency claims the move is aimed at making investors aware about the potential risks of investments involving bitcoin and other forms of virtual currency. Some of the highlighted risks include the higher volatility of bitcoin compared to other investment vehicles, as well as the lack of protection in cases where a bitcoin exchange goes belly up.

The SEC says that as a new invention, bitcoin does not have an established track record of credibility and trust. "Bitcoin and other virtual currencies are evolving," the warning reads.

MasterCard Goes to Washington

MasterCard (MA) hired Peck Madigan Jones to lobby in Washington D.C. on the topic of bitcoin and other cryptocurrencies (among other MasterCard policy issues). It is unclear if the PMJ lobbying will be in favor of bitcoin. However, taking into account the fact that cryptocurrencies are a potential threat to the MasterCard business model, this doesn't seem likely.

Coincidently or not, a few weeks later, members of the House Appropriations Committee announced they have concerns with "virtual currencies like bitcoin." Lawmakers are worried that criminals and terrorists may be using virtual currencies to launder and transfer money, and added they are waiting for a briefing on the matter from the FBI. Not long after this statement, we also got the SEC investor alert.

So far the latest moves from Washington have had little to no effect on the price. It remains to be seen if investors will get spooked by the latest warnings coming from the U.S. capital.

This article represents the opinion of a contributor and not necessarily that of TheStreet or its editorial staff.

2 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
AAPL $94.19 -1.04%
FB $118.06 0.54%
GOOG $695.70 0.48%
TSLA $222.56 -4.20%
YHOO $36.00 -0.03%


Chart of I:DJI
DOW 17,651.26 -99.65 -0.56%
S&P 500 2,051.12 -12.25 -0.59%
NASDAQ 4,725.6390 -37.5850 -0.79%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs