Beware of Bitcoin

Bitcoin – a digital currency created in 2009, which uses decentralised technology rather than one central bank – is gaining more and more interest lately.

Since it thrust itself into the mainstream some five years ago, Bitcoin has been a constant source of interest and confusion, but the currency has certainly garnered more attention recently.

Since Christmas, Bitcoin has endured a drop of more than 50 per cent in little over a month, and its sudden crash from $20,000 to under $8,000 has led to concern.

Alan Mellor, Managing Director of Phillip Bates & Co Financial Services has issued a warning about the currency.

He said: “We’re advising our clients to be very wary of Bitcoin.

“The currency’s sudden crash is concerning; when looking at the bigger picture, we as a nation don’t truly understand a lot about this fairly-new phenomenon.

“It can leave those who invest in it potentially very vulnerable – without the need for physical cash, Bitcoin is essentially a chunk of code sitting on a person’s computer, which can also be used in ransoms.

“Far from an investment, Bitcoin is really a gamble.”

Need some advice? Contact Alan Mellor on 0151 353 1066.