In response to the news that the price of bitcoin has plummeted below $50,000, Adrian Lowcock, Head of Personal Investing at Willis Owen comments:
“Bitcoin and its cryptocurrency peers are suffering from some huge falls in prices this week as it once again displays its trademark volatility.
“Whilst this is by no means the largest percentage fall they’ve ever seen, it acts as a reminder to investors that such assets are highly speculative, and vulnerable to changes in political and tax rules, as we have seen this week.
“Cryptocurrencies and digital currencies remain new technologies and are yet to be widely adopted, so whilst there is growing interest – even from central banks – it is still a long way from being mainstream. As such, investors should only be willing to put in what they can afford to lose and be able to tolerate wild swings in the prices.”
