26 May SmartMoney Podcast: ‘Is Bitcoin Safe?’
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Welcome to NerdWallet’s SmartMoney podcast, where we answer your real-world money questions.
This week’s question is from a listener who asks, “Is bitcoin a safe investment? And do you recommend it?”
There’s nothing safe about investing in bitcoin and other cryptocurrencies. You can lose a lot of money and there’s no guaranteed return.
Consider what happened with bitcoin in just a one-year span. In December 2017, one bitcoin was worth more than $20,000. A year later, the value had plummeted to $3,000. It’s been up and down ever since. Plus, there are other risks. You could lose your investment to hacking or fraud. Also, cryptocurrency is still in its infancy and there’s no way to tell which version, if any, will prevail.
All investments carry risks, of course. Even super-safe investments such as Treasury bonds can lose value over time, since the interest rates paid may not keep up with inflation, which erodes buying…