As more people continue to jump on the bitcoin bandwagon and invest their money in different forms of cryptocurrencies, debt strategists working at Bell & Co warn that hasty investments could lead to problems.
Bitcoin has recently capped a remarkable rise in value, with one coin now worth £7,493 – this is a significant accomplishment given that the virtual currency was trading below $1,000 at the start of the year.
Despite this seemingly positive development and the fact that many experts think that the financial asset still has far to soar, others think that the sharp increase in its value could be a warning sign of a speculative bubble that could burst at any moment.
Amanda Bell, Director said: “In recent weeks bitcoin has seen some pretty impressive growth and it’s no surprise that many people are now choosing to invest their money in cryptocurrency.
“While the figures seem promising, it’s important for people to recognize that fluctuations can occur and if large investments are made, significant sums of money could be lost if the bubble is to burst.
“The fact that the reason for this sudden rise in value is unknown is also worrying and means that there is more uncertainty surrounding cryptocurrency and where it is heading as a form of financial investment.
“We would advise anyone that has invested in cryptocurrency or is thinking of doing so to get in touch with us as one of our specialized professionals will be able to determine the best course of action to ensure that you don’t find yourself in an undesirable financial situation.”
Bitcoin has a checkered past, having first reached $1,000 back in 2013, after which it dropped in value significantly before beginning on its shaky climb to its current position.
It’s thought that the virtual currency’s new high value could be a result of an announcement made by US-based derivatives marketplace operator, CME Group. It said it planned to launch a Bitcoin futures product before the end of 2017, which may have boosted and secured confidence in the future of the currency.
Bell and Co. operates with an extensive team that includes legal experts, accountants and insolvency professionals and can offer impartial advice to both businesses and individuals regarding their finances.
For more information about Bell & Co, please visit http://bellcomp.co.uk/ or call 028 9521 7373.