Bitcoin seems to be everywhere these days.
With Bitcoin ads filling people’s inbox, it’s no surprise that Money Saving Specialist Martin Lewis has addressed the question – should you buy Bitcoin?
Martin was asked about the cryptocurrency on his ITV show earlier this month, and has since clarified his advice.
Recently, the value of Bitcoin has risen to nearly £ 30,000, causing many to wonder if they are missing out on a good thing.
But the Money Saving Expert urged the public to be wary, as Bitcoin is a highly volatile form of investment.
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Responding to a viewer named Andy on The Martin Lewis Money Show (January 7) Martin said: “Bitcoin is set up as a currency – a non-government currency – so you’re supposed to be able to spend it, but I’m suppose you think of this not to spend but more as an investment, and that’s what most people look at.
“First of all is it safe? Well some people have lost money in their wallets. Like gold it can be stolen, and cryptocurrency is a bit like gold in that it’s a store of what people give in. You have to be very careful. “
On his website, Martin explained that he should have said “many see Bitcoin as a store of value” as its value depends only on what people are willing to pay for it.
Turning to whether Bitcoin is a worthwhile investment, he warned that its prices are “rising dramatically and they are falling dramatically”.
“And the reason for stressing so much is that you can make a fortune but you may lose a fortune,” he added.
Since the value of Bitcoin has plummeted to around £ 300 in the past, Martin cautioned that only those who can afford to lose cash should consider investing.
The Financial Conduct Authority (FCA) issued a warning regarding companies advertising cryptoassets last week, directing consumers to their ScamSmart checker.
Martin also told people about being wary of fake Lewis Martin ads promoting cryptocurrencies with his face or name. He doesn’t do ads.
The finance expert told viewers: “You will have seen ads with me for trading Bitcoin or Bitcoin.
“They’re not Bitcoin, they’re scams – don’t touch them – if you see my face in an ad, it’s not true.
“Be extremely careful to do your research and go for a legitimate source if you want to get your Bitcoin.”