In a statement, Kaspersky Lab noted how Bitcoin transactions are fast, taking around only 10 minutes to verify a transaction. It added that it is cheap and convenient, removing the need to maintain or pay for processing fees for a credit card company.
And similar to other money transfer services, it can be transferred from another person from halfway around the world in minutes and can be converted to traditional currencies.
Here in the Philippines, there is a growing community of Bitcoin enthusiasts called Bitcoin PH. An online exchange platform called BuyBitcoin.ph lets Filipinos have easier access to the online currency.
Kaspersky Lab, however, also mentioned some risks associated with the use of Bitcoin.
Since there is no central authority controlling it, there are no rules as fare as currency regulation goes, making Bitcoin highly volatile, it said, adding that central banks from different countries have issued public warnings about risks such as money laundering.
The Bangko Sentral ng Pilipinas has also yet to create regulations and measures to protect Bitcoin users.
On top of this, Kaspersky Lab said that Bitcoin transactions are irreversible, which means users must be more careful when using such currency. This, it said, may nurture fraudulent transactions, noting that there have been more than 30 instances of stolen or illegal transfers involving Bitcoin.
"While BItcoin can be a change-maker in money remittance and trading in the Asia Pacific region, people should be more wary about the risks associated with it. There are still countries in this region where no regulations exist to bind its users, and the fact that reversals cannot be done for Bitcoin transactions must make people more concerned about using the crypto-currency," said Bryan Sat, Kaspersky Lab's business development manager for the Philippines.
"Threats are not going away, it continuously evolves and hackers embrace every opportunity there is. With Bitcoin, hackers may find it easier to get into any user's online wallet and take their Bitcoin investments rather quickly," Sat added.
Having said these, Kaspersky Lab gave the following tips on how to keep your Bitcoins safe:
1. Don't keep them all in online banks or stock exchange services. There are newer institutions run by anonymous entities, so you have no guarantee that your money will be securely held or if you can have your money back if they are robbed.
2. Even if you consider a place that has a supposedly sterling reputation, again, there are more ways to breach a digital bank than a physical bank vault. Storing small amounts for current operations is okay, though.
3. Keep this offline wallet in a separate hard drive or a computer that is not connected to the Internet, only transferring Bitcoins to your Internet-connected device when you need to complete an online transaction.
4. Bitcoin users can certainly keep their money offline using free and widely available tools like Electrum or Armory that let you store your Bitcoins in heavily encrypted cases on your own hard drive.
5. Use a strong password with these or an open-sourced password-generating software.
6. Remember to back up your wallet so you don't end up throwing out all your life savings to the nearest landfill site.
7. Know where you keep them. James Howells, an IT worker from South Wales, once discarded an old hard drive containing his wallet which had around 7,500 Bitcoins inside or the equivalent of today's $6,235,000 (over P287 million).
source: www.abs-cbnnews.com
