THREE things you should know about bitcoin, according to experts
CRYPTOCURRENCY has attracted a large number of new investors in recent months, but anyone thinking about investing in cryptocurrency should be aware that it carries significant dangers.
The Financial Conduct Authority (FCA) released research this month that revealed 2.3 million people in the UK own crypto assets, up from 1.9 million last year.
This website spoke with cryptocurrency specialists about some of the most significant hazards associated with cryptocurrency investment.
Many people have become victims of bitcoin scams as the market has grown.
“The most spoken about is the possibility of falling victim to one of the many frauds hitting the crypto space,” said Erica Stanford, lecturer in cryptocurrencies at Warwick Business School, crypto network founder, and author of Crypto Wars: Faked Deaths, Missing Billions, and Industry Disruption?
“Unfortunately, as with any growing technology – but especially in the domain of digital money, where gains may be substantial – many opportunists have taken advantage of the excitement, and there are several frauds out there, many of which are large and clever.
“These con artists employ deceptive marketing, sometimes multi-level marketing, and will go to any length to target their victims. It is necessary to maintain vigilance.”
There are a slew of other cryptocurrencies out there, in addition to well-known ones like bitcoin and Ethereum.
Because many cryptocurrencies are mostly unregulated, there is a substantial risk associated with investing in them.
People should be informed that investing in cryptocurrencies can result in them losing all of their money, according to Sheldon Mills, the FCA’s executive director for consumers and competition.
“The data demonstrates rising interest in cryptoassets among UK customers,” Mr Mills said in response to the FCA’s findings, which suggest that more people own cryptocurrency currently than last year.
“As prices have climbed, the market has continued to grow, and some investors have benefited.
“However, users should be aware that, because these products are mostly unregulated, they are unlikely to have access to the FSCS (Financial Services Compensation Scheme) or the Financial Ombudsman Service if something goes wrong.
“Consumers should expect to lose all of their money if they invest in these types of products.”
The volatility of cryptocurrency markets is one of the “most prominent” hazards of investing in bitcoin.
“Crypto markets are heavily controlled, and values can skyrocket and plummet by tens of percent in a day,” Ms Stanford added.
“There are a lot of variables.” Brinkwire Summary News”.