Martin Lewis: Ought to You Purchase Bitcoin?
What is Bitcoin and is it Safe?
Here are some of Martin's responses from the live show (along with additional notes from Martin in square brackets and italics – added in the cold daylight).
Martin said on the Martin Lewis Money Show, “Bitcoin is set up as currency – non-governmental currency – so you should be able to spend it, but I assume you will remember not to spend this but more as an investment that most people do consider.
"First of all, is it safe? Well, some people have lost money in their wallets. How gold can it be stolen, and cryptocurrency is a bit like gold in that it is a store of value for what people are investing. You have to be very careful." . "
(Specifically, I should have said, “Many see Bitcoin as a store of value.” It has no value of its own; it's only worth what people are willing to pay for it. Those who see it as a store of value do so because they believe that others are always willing to pay for it.
For more information on the basics, check out my blog Bitcoin 2017: Four Things You Need To Know Before Investing (It's A Little Out Of Date, But It Helps Beginners To Understand).
With Bitcoin and other types of cryptoassets, you are unlikely to have access to the Financial Ombudsman Service or the Financial Services Compensation Scheme (FSCS) if something goes wrong.)
Can I make money with Bitcoin?
While the value of Bitcoin has risen to around £ 30,000 recently, its value has been extremely volatile and has historically dropped to around £ 300. So you shouldn't invest if you can't afford to lose the money.
Martin said on the Martin Lewis Money Show, "Whether it's a good thing – I'm not talking about investing. The thing about investing – and Bitcoin is an investment – is that prices go up and down. With Bitcoin, they go up and down massively . And the reason for the emphasis is that you can make a fortune but you can lose a fortune. "
(On the show, I said the previous level for Bitcoin prices was two years ago, but things go fast as you get older and it was actually December 2017.)
He added on TV, "So if you can't afford to lose the money you have deposited, don't invest in that money. It's a game of chance like all kinds of stocks and shares, and all kinds of investments and money in gold. The choice is yours, but if you get it right the investment should work for you, but that doesn't mean you won't lose money. "
(Technically speaking, it is questionable whether Bitcoin invests or just speculates – since investing usually involves the ability to generate or accumulate income, while speculation is a direct bet on the price of something. There is no protection with Bitcoin, there is no guarantee it's worth money. Of course if you buy and prices rocket you can make a lot of money. Whether that will happen or not, nobody knows.
Many people pushing Bitcoin will tell you things like "the fundamentals have changed," "big investment firms are getting in," "there is greater transactional demand," and in fact, it may all be true. But when they say that the price will continue to rise, it is moving into the realm of speculation. Nobody has a crystal ball. There are no guarantees.
Once things are already known in a speculative market, they are immediately factored into the price (or even taken into account beforehand if it is expected to happen). So go in with your eyes open and understanding that you are doing it, hoping to win, but knowing that you might lose some or all of your money.
It's worth noting that since the program aired, the Financial Conduct Authority (FCA) has also issued a warning that investing in cryptoassets like Bitcoin, or related investments and loans in general, is very risky so you should be ready be losing all your money ".)
ATTENTION Scam reports that lie that Martin recommends Bitcoin
Scammers have mistakenly used fake Martin Lewis ads with his name and face to advertise cryptocurrencies, but these are scams. Martin doesn't advertise – if you ever see one with his face or name on, it's without permission. In fact, Martin sued social media site Facebook over these ads, settling for £ 3 million to be donated to charity.
Martin said on TV, "They saw ads with me for Bitcoin or Bitcoin trading. They're not Bitcoin, they're a scam – don't touch them – if you see my face in an ad, it's not true. Be They incredibly be sure to do your research and look for a legitimate source if you want your bitcoin. "
(The point in your research is crucial. We don't have a guide on how to buy Bitcoin on the website as we don't usually describe what to invest in. This story is only here because I am asked so many times about this one Subject, probably because people saw the scam ads. Never buy bitcoin from an ad, read it, do your own research – and if you want bitcoin, make sure that you buy it and that nobody is selling it for you. )