Why Bitcoin is high risky?

  

             Bitcoin is a digital currency, started in 2009.It is a decentralized virtual currency which is not issued by any central bank.Many popular websites in European union accept bitcoins for digital transactions.It is not regulated by any goverment or  not connected with banking system It is just used as an online medium of exchange.

     
       Now a days, momentum of bitcoin transactions declined very much after a long rally in previous years.Many investors lost money in bitcoins.Mt Gox, World's largest bitcoin exchange collapsed and reported the loss of 8.5 lakh bitcoins due to hacking.Securities and exchange commission in united states warned investors to be alert on bitcoin scams and asked clarification from all bitcoin companies recently.Bitcoin is already banned in Russia and few African nations. Countries such as China and France discourage bitcoin trading.However,no government has taken a clear stand on the existence of bitcoins.Reserve Bank of India warned people to avoid digital currencies due to  the unauthorized and insecure nature.

        Bitcoin lost 65 % of it's value from the high price in 2014.A major concern is increasing volatility of bitcoin over a period of time.Experts tell that we cannot recover the lost bitcoins, because it is not backed by any asset.
Another concern is the use for black money and other illegal fund to trade in bitcoins.Lack of legal protection for bitcoin holders makes it a speculative asset,which may erode value any time.