Bitcoin shaming-a worrying trend in a world of unknowns!

Oh Bitcoin-where do i start?

You've had a phenomenal run on the markets, albeit with a level of sustained volatility that Jose Mourinho would be proud of and yet still, its considered a niche investment, which is still largely un-regulated in most countries-illegal in others but fundamentally misunderstood by the masses.

So, the real questions is, should I invest in Bitcoin just because the larger, Bitcoiner community feels its acceptable practice to shame others into risking their wealth on a cryptocurrency which could be banned over night if a government(s) decides that Bitcoin devalues their own currency or is used by criminal organisations? (Deep breath)

The answer, of course, is 'NO' but lets take a look at Bitcoin first before we get deeper into this:

Bitcoin was invented by an unknown group (watch for a theme developing) under the name 'Satoshi Nakamoto' and released as an open source software in 2009. The network is based upon peer to peer transactions, I suppose similar in some ways to Crowdfunding, but far less transparent and infinitely more risky, allowing the Bitcoin to be traded for real world currencies and accepted by over 100000 merchants across the globe as of Feb 2015 (Source: Wikipedia)

Bitcoin works by using blockchain technology which essentially allows all users of Bitcoin to verify each others transactions in the absence of a central bank (like the Bank of England for example) and ownership is dictated via Bitcoin addresses which could be compared to IP addresses in some circles but I am over-simplifying this to aid its explanation and i would thoroughly encourage you to read up on the subject yourself.

(https://en.wikipedia.org/wiki/Bitcoin)

The biggest issue I feel Bitcoin faces is that it lacks a central power to oversee its transactions, its all verified via the users of Bitcoins themselves meaning that the small percentage of criminals who use this cryptocurrency for illicit purposes will have some semblance of control over the wealth transfer and it's at this point, if proven, that the governments could step step in. At this point, a government could declare that Bitcoin's use could be criminalised turning all the Bitcoiner's wealth into a load of worthless numbers.

You'd be forgiven for thinking that I want Bitcoin to fail-in fact, the truth is quite the opposite as I do see crpytocurrencies to be part of 'the future' but my gripe is with the sudden and worrying trend of unqualified 'Bitcoin Advisers' who seem to think its acceptable to shame the rest of us into investing into an 'asset' which is not formally recognised, regulated or legalised across the world-as of yet albeit.

In the last few months I've been encouraged to buy Bitcoin from a chap who's professional title was genuinely 'Head Baker at Morrisons' (a UK supermarket) and another who's title was 'Window Technician' (no-not Microsoft but a window cleaner!!) who all seem to think that I'm 'missing out' and 'getting left behind' and 'how will you look into your children's eyes and tell them you missed out on the biggest wealth transfer in history' which i must admit was one of the funniest things I have seen written by a professional in quite some time!

In the UK, we are currently in the midst of a pension transfer miss-selling scandal where thousands of people are having inappropriate transfers pushed upon them regardless of its suitability-however-because financial services, the products and the investment strategies are regulated by the FCA (Financial Conduct Authority) there is re-course for action. The Government will also guarantee a certain amount of your pension and efforts will be made to reimburse you if the Ombudsman finds in your favour but if you invest some money into a Bitcoin enterprise or platform and the owner is 'hooky' in anyway then you are up the proverbial creek without a paddle! There is no recourse for you-the 'wealth' is gone as is your trust in Bitcoin.

Its genuinely horrifying to think that completely unqualified people are trying to push an 'asset' that has no formal controls or measures, other than the word of another Bitcoin owner, onto layman investors. Its even more scandalous to shame people into investing into it via social media-which for all we know powers the boom in Bitcoin as its such a hot topic and all over the various websites that we all frequently use.

The people to trust when asked about Bitcoin are the true professionals in the industry-the financial advisers, fund managers & discretionary managers - the guys and gals' who've spent years of theirs lives qualifying themselves to make the best decisions for you-the consumer-all of whom are regulated by the oft disliked but fundamentally essential, regulatory bodies through which all consumers derive piece of mind.

Essentially, that is what investing comes down to isn't it? 'Piece of mind' or the confidence/knowledge that our money is invested in a strategy that meets our appetite for risk, desired goals and is handled by a professional who knows what he is talking about.

Is Bitcoin the future? Maybe-but until it receives some form of international regulation or control from the worlds governments, I for one, will be reluctant to invest in something that could be deemed illegal, overnight and therefore inherently risky!

So, in summary, will I be shamed into investing into Bitcoin by Gary-the Head Baker at Morrisons? Absolutely not! However I will keep a weary eye on these people, just in case they need the help of a professional financial adviser in the future-of which I'm fortunate to know hundreds-in the hope that they stop gambling on their wealth and approach their wealth generation in as diversified, regulated and appropriate way as possible.

Thanks for reading.

*these views are mine own and not that of Defaqto