One Bitcoin equals 41,012 Shekels or $11,896 dollars.

The Bank of Israel, the Israel Services Authority and a number of other economic institutions in Israel are warning against the use and purchase of the popular virtual coin known as Bitcoin, as well as similar virtual currencies. The reason that the authorities warn against the use of the virtual coins: heighten chances of money laundering, tax evasion, theft and even their use for the funding of terror groups.

Following a joint meeting with senior members of the Israeli economy, which was initiated by the governor of the Central Bank of Israel, Dr. Karnit Flug, an announcement was released in which the economic experts warned the public of the potential dangers of using and purchasing the viral currency known as Bitcoin because it is not under the control and regulation of any central bank or government.

According to the experts’ assessments, because Bitcoin and other virtual currencies allow users and purchases to transfer funds from one account to another anonymously, the transfer of money using these currencies could encourage money laundering, tax evasion, theft and could even go towards the funding of dangerous terror groups. According to their announcement, the option of anonymous transfers could be taken advantage of for criminal uses, including the funding of illegal activities, money laundering, and even terror.

In the announcement, the economic experts in Israel also warned that an economic system based entirely off of virtual coins would set the stage for fraudulent activities, like ‘Ponzi schemes’ we are so familiar with because of Bernard Madoff. In addition, the virtual transfer of funds cannot be canceled, and once a transaction is carried out, it is impossible to get back the amount paid if something doesn’t go as planned.

Virtual coins like the popular Bitcoin are usually kept on a computer or smartphone, which means that it could be easier than ever before to hack into your bank account without the proper protection for your phone or computer. In addition, if a user forgets his password to enter the Bitcoin system, he is likely to lose the entire worth of his Bitcoin account.

According to the experts, the dangers of using Bitcoins and other virtual currencies outweighs the payoffs for a number of reasons and in their announcement, they all on all Bitcoin users in Israel and the world to be aware and remain in tune with the potential weaknesses in the system.