In this blog post, Guardian Wealth Management reviews the rise of Crypto-currency and looks at the pros and cons for expats who are considering investing in this relativity new digital asset class.
Being an unregulated market, cryptocurrencies offers no protection and investors can lose money as quickly as they make money.
After a period of strong growth, the past month has seen the value of Bitcoin fall by 50%, while other cryptocurrencies such as Longfin are down around 10-15%. This drop comes as countries around the world take a firmer stance against trading in cryptocurrencies, with South Korea introducing a ban on anonymous crypto-trading and India suspending the accounts of cryptocurrency investors.
Earlier this month Bitcoin traded at below US$10,000 down from its December high of $20,000, with experts issuing fresh warnings about the volatility of the currency and the possibility of yet more crashes to come.
The popularity of Bitcoin and fluctuations in its stability has led to rumours that new and stringent regulations are due to be announced by Central Banks at the next G20 summit, to be held in March. If implemented these new rules could, in theory, make for a more secure future for cryptocurrencies.
Cryptocurrencies and the underlying blockchain technology could have a future in modern society and are extremely useful for the exchange of information and goods, however until the market is regulated they should be approached with caution. However, what impact any new regulations would have on the value and appeal of Bitcoin and cryptocurrency as a whole remains to be seen.
Investing in Bitcoin and other cryptocurrencies without a sound regulatory framework remains risky.
Putting money in is a gamble. If it does well you could double or treble your income, but just as easily if it goes badly you could lose everything. As with any investment decision, Guardian GS recommend you obtain professional advice.
Saving for the future is a great habit to get into and as an expat you have access to a wide range of tax efficient investment vehicles
We use UK Crown Dependencies or territories with similar protection and the same transparent regulations.
This allows us to offer tax efficient investments and savings with high levels of investor protection which gives peace of mind to our clients.