n May 2010 Laszlo Hanyecz bought two large pizzas from Papa Johns using 10,000 bitcoin (the equivalent of £30). This bitcoin today would be worth more than £170 million.
Fast forward to 2022, we see crypto adverts plastered all over the Tube on our morning commutes, scrolling on Instagram we see crypto traders promoting their lavish lifestyles and WhatsApp groups with our friends now include speculation about the latest coins.
Being surrounded by the noise of crypto and stories of those who have made their fortune from investing in it, no wonder that many people get FOMO and think ‘if they can do it, then why can’t I?’
According to the Financial Conduct Authority, as of June last year, 2.3 million Brits had invested in crypto, but what is frightening is that 14 per cent said they had borrowed to invest and 18 per cent said they did so due to fear of missing out.
The cost of living crisis means that more people are struggling financially and naturally this makes the promise of extremely high returns sound very appealing. The danger is that those more likely to try and invest in ‘get quick rich’ schemes are the most vulnerable, as they cannot afford to lose money.
So, what actually is cryptocurrency?
Cryptocurrencies are virtual currencies that are bought and traded online. You can send cryptocurrency directly to another person without needing to use a third party (such as a bank) to process the transaction.
While digital currencies are likely to be the…
