American investments watchdog, the SEC has taken note of the rise of Bitcoin and issued a warning concerning its negative qualities. This has to do with the credibility and trust of the cryptocoin which the SEC notes cannot be guaranteed due to its short existence in the market. Since banks are not involved in the handling Bitcoin transactions, this makes it hard for law enforcement agencies and the SEC to investigate cases related to the coin. By virtue of being decentralized, Bitcoin presents a major challenged to established practices. This makes it a nice channel for conducting illegitimate businesses although the string of failed Bitcoin exchanges remains as one of its drawbacks.
