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BITCOIN IS PUMPING BUT BE WARNED!!!!What are some risks of Bitcoin and cryptocurrencies? Financial loss. Bitcoin and other cryptocurrency prices historically have been highly volatile, and. Each sale can result in a capital gain or loss for U.S. taxpayers. Bitcoin comes with high transaction costs, and the transactions can take several minutes to. The short answer: No. Bitcoin is a particularly risky investment with more volatility than traditional investments of stocks, bonds and funds.