In the last several months, you might have heard stories about people striking it rich and losing big by speculating on virtual money -- or cryptocurrency, if you want to sound all fancy-pants cyberpunk and shit -- known as Bitcoin.
Despite Bitcoin's volatile busts and booms (one bitcoin cost $13 in January 2013 and is valued at roughly $900 now) and the fact that governments around the world are giving it the legal stink eye, some of you may still be curious about it. After all, who wouldn't want to invest in a magical pinata that seemingly explodes into a geyser of fine topaz every few days?
Well, before you get too giddy, know that Bitcoin isn't wizard money and has some pretty significant downsides, namely ...
4 Bitcoins Are Easy to Lose
Being a virtual currency, Bitcoin doesn't exist in the real world. The reason why Bitcoin and other cryptocurrencies like Dogecoin (no, seriously, this is a thing) are so popular is because users transfer the currency directly between each other and don't require a middleman like PayPal or a bank. (This also explains why Internet drug dealers are oh so fond of cryptocurrencies.)