Bitcoin ‘n’ Blockchain (006): Your Cryptocurrency is Safe but Wortless!

This is probably the current thought of people who have invested their real assets on so called World’s Leading One-Stop Crypto Exchange, OKex.

For more than two weeks there is the same message on the Internet homepage of OKex:

„Withdrawals on OKEx are still paused. The security of user funds is our top priority. All user funds remain safe and unaffected.“

This is unfortunatelly a serious and emphatic remainder about the legal status of so-called cryptocurrencies:

1. The so-called cryptocurrencies represents in reality only digital tokens.

2. A digital token is something that could be exchanged in special places and could be transferred into legal tender if you find another parties who is willing to do it. This means that you normally only have a potential possibility. A digital token can be asset-backed (e.g. stablecoins like Tether) or not (e.g. Bitcoin, Ethereum). Because it is not a legal tender and you do not have the right to use it as an official means of payment. 

3. Please kindly note, that by converting your fiat currencies (Euro, Dollar, et cetera) into so-called cryptocurrencies you are entering the realm of highly speculative domains. You can get rich, lose everything or literally have only a symbolic wealth on your computer without a real possibility to use it.