Bitcoin seems to be everywhere these days.
With Bitcoin ads filling up people’s inboxes, it’s no surprise that Money Saving Expert Martin Lewis has tackled 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.
The Bitcoin value recently rocketed to nearly £30,000, causing many to wonder if they’re missing out on a good thing.
But the Money Saving Expert urged the public to be cautious, as Bitcoin is an extremely volatile form of investment.
For the latest news in your area, enter your postcode below:
Responding to a viewer called Andy on The Martin Lewis Money Show (January 7) Martin said: “Bitcoin is set up as a currency – a non-governmental currency – so you’re meant to be able to spend it, but I’m presuming you’re thinking of this not to spend but more as an investment, which is what most people are looking 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 an equivalent to gold as it’s a store of value of what people are putting in. You have to be very careful.”
On his website, Martin clarified that he should have said “many see Bitcoin as a store of value” since its value only depends on what people are willing to pay for it.
Turning to whether Bitcoin is a worthwhile investment, he warned that its prices “go up massively and they go down massively”.
“And the reason for stressing that so much is that you can make a fortune but you may lose a fortune,” he added.
Since Bitcoin’s value 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 over firms advertising cryptoassets last week, directing consumers to its ScamSmart checker.
Martin also told people to beware of fake Martin Lewis adverts promoting cryptocurrencies with his face or name. He does not do adverts.
The finance expert told viewers: “You’ll have seen adverts with me in for Bitcoin or Bitcoin trading.
“They are not Bitcoin, they are scams – don’t touch them – if you see my face in an advert it’s not true.
“Be incredibly careful to do your research and go for a legitimate source if you want your Bitcoin.”