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Have you ever daydreamed about becoming a Bitcoin billionaire? Yep, me too. Although, I think I’m still unclear on what crypto even really is.
Okay, so basically this kind of money comes in the form of digital units, so they don’t actually exist in any physical form. And also unlike bank notes and coins, crypto isn’t issued by a central bank, but there are lots of different currencies out there (scroll down for some of the crypto biggies). Proceed with caution, but if you have some spare cash, you can buy crypto via trading apps such as Coinbase or Kraken. This Urban Dictionary definition is, urm, sort of useful: “An investment like money or stocks, except tied to absolutely nothing. So let me get this straight, the only thing that makes cryptocurrency valuable is people think other people think it’s valuable… And that’s it?”
Look, the internet is full of info on crypto, but be wary – there’s a lot of misinformation out there. It’s super important to cross-reference and double-check everything you read. Still confused? Yep me too, so I turned to Anna-Sophie Hartvigsen, co-founder of Female Invest, a platform committed to empowering women to achieve financial success, to answer some niggling questions. Consider this your cheat sheet to keep up if everyone’s talking crypto at a party… you’re welcome.
We know that crypto is ‘volatile’, but what does that really mean?
‘The worry about crypto investment is that you can lose huge sums very quickly. As we entered February this year, a single bitcoin was worth £28,593 and a single Dogecoin was 11p. In the past year, Bitcoin’s value has been as high as £49,800 and as low as £22,600, with Dogecoin starting life at less than a penny and peaking at 49p. Making the right calls at the right time during 2021 could have netted a very tidy profit; however, £1,000 worth of Dogecoin bought when it was valued at 49p would now be worth around £300.’
What can affect its value?
‘It’s an industry powered by impulse, rumour and the word of just a few key figures. Billionaire Elon Musk is a key crypto figure and – with just one action or statement – he can impact your investment overnight. For example, Musk promoted Dogecoin on all his socials, but then apparently caused the price of it to dip by nearly 30% after he made an awkward joke on US TV show Saturday Night Live, which made investors sell their stock. UK investors, stuck in another time zone, woke up to find that a single Musk action had crashed their investment overnight.’
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Okay, but is my money protected at all?
‘It’s an entirely unregulated market and not protected like normal financial transactions. If you buy crypto via a platform and that platform folds, or the transaction is somehow mismanaged and the crypto fails to materialise, you have almost no one to complain to and there are few laws on your side to get the investment back.’
Are there any ethical implications?
‘There are several ethical arguments made against crypto. First, due to its lack of regulation and the difficulty in tracking its peer-to-peer transactions, it provides criminal and terror organisations with the …….
Source: https://uk.style.yahoo.com/eyntk-cryptocurrency-135500443.html