The Texas State Securities Board today warned Texans about the dangers of trading in the virtual currency known as 'Bitcoin,' just as plans are underway to install the first Bitcoin ATM in Texas, 1200 WOAI news reports.

Securities Commissioner John Morgan said people who trade in Bitcoin are at greater risk of loss and of seeing damaging currency fluctuations.

"Although digital currencies such as Bitcoin are often touted as a sophisticated, online alternative to traditional currencies, investors should realize these currencies are not tangible, they are not issued by a government, and are not currently subject to traditional regulation or monetary policy," Morgan said.

He says if your stash of Bitcoin disappears from your on line wallet, there is no police agency you can complain to.

A Nevada company says it plans to install ATMs that will accept Bitcoin and will allow customers to transfer their dollar currency into Bitcoin.

Morgan pointed out that while the advantage of Bitcoin is touted as anonymous, that anonymous nature can easily be exploited on line to make the holder unwitting participants in money laundering. He also warned that digital currencies fluctuate wildly in value, and since Bitcoin is a consumer-created currency, it faces the 'MySpace Effect,' and could be rendered valueless by the introduction of another type of digital currency.