Personal Wealth Autumn 2018
Virtual Currencies/Interest Only Loan Renewals/Investment Markets
Many virtual currencies, such as Bitcoin have emerged over the last 10 years but just how safe are they? We explain how virtual currencies work and the risks you take buying, trading or investing in them. What are they? Virtual currencies are digital currency or electronic money. They do not physically exist as coins or notes. Many digital currencies (also called crypto currencies) started in online gaming communities or on social media. Although they can be used as a form of payment if another person is willing to accept them, they are not legal tender. The value of virtual currency can fluctuate significantly, they may not be accepted in many places and they are not guaranteed by any bank or government. How do they work? The Users can 'earn' or create virtual currency. For example, in the Bitcoin network, users (known as Bitcoin Miners) can participate by using computer-intensive software to validate transactions that have been made through the network and earn new bitcoins as a reward.