Bitcoin: is it a ‘get rich quick’ scheme?
Financial watchdog finds most crypto investors bought digital coins without understanding the market

Investors are buying cryptocurrencies such as bitcoin and Ethereum in an attempt to make a quick profit without fully understanding the market, according to a new study.
Research by the Financial Conduct Authority (FCA) into consumer attitudes towards cryptocurrency found that most people did not have “a good understanding of what they are purchasing”, The Daily Telegraph reports.
Some investors who were quizzed by the watchdog talked about buying “whole” coins, without realising that they could buy a fraction of a digital currency, the newspaper says.
Subscribe to The Week
Escape your echo chamber. Get the facts behind the news, plus analysis from multiple perspectives.

Sign up for The Week's Free Newsletters
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
Around 3% of all those interviewed had purchased a virtual coin. Men between 20 and 44 were the most aware of cryptocurrencies, bitcoin was the favoured token, and around half of the investors had spent less than £200.
When asked why they had invested, many said they had heard about the opportunity through “friends, acquaintances and social media personalities”, the Daily Mirror reports.
Bitcoin’s surging values in late 2017, when the cryptocurrency peaked at nearly $20,000 (£15,280), has also played a major role in luring amateur investors to the market.
Following its meteoric rise, the cryptocurrency market had endured repeated sell-offs over the past 14 months. As of 10am UK time, bitcoin’s value sat at $3,917 (£2,993) per coin, according to CoinMarketCap.
Although the lack of understanding among investors has caused concern, the FCA concludes that the “overall scale of harm” may “not have been as high as previously feared”, as the sums being invested are generally quite small, the BBC reports.
Nevertheless, Laura Suter, a personal finance analyst at investment firm AJ Bell, is urging potential bitcoin investors to ensure they “know the risk of what you’re buying and that you’re not just relying on hype and excitement from friends or social media”.
“Investing is not a get rich quick scheme, it’s a way to build wealth slowly and with patience,” she warned.
Sign up for Today's Best Articles in your inbox
A free daily email with the biggest news stories of the day – and the best features from TheWeek.com
-
The secrets of lab-grown chocolate
Under The Radar Chocolate created 'in a Petri dish' could save crisis-hit industry
By Chas Newkey-Burden, The Week UK
-
Trade war with China threatens U.S. economy
Feature Trump's tariff battle with China is hitting U.S. businesses hard and raising fears of a global recession
By The Week US
-
Corruption: The road to crony capitalism
Feature Trump's tariff pause sent the stock market soaring — was it insider trading?
By The Week US
-
What Trump's win could mean for Big Tech
Talking Points The tech industry is bracing itself for Trump's second administration
By Theara Coleman, The Week US
-
Network states: the tech bros who want to create new countries
Under The Radar Concept would allow you to 'choose your nationality like you choose your broadband provider'
By Chas Newkey-Burden, The Week UK
-
Paraguay's dangerous dalliance with cryptocurrency
Under The Radar Overheating Paraguayans are pushing back over power outages caused by illegal miners
By Chas Newkey-Burden, The Week UK
-
2023: the year of crypto instability
The Explainer Crypto reached peaks — and valleys — throughout 2023
By Justin Klawans, The Week US
-
Sam Bankman-Fried found guilty: where does crypto go from here?
Today's Big Question Conviction of the 'tousle-haired mogul' confirms sector's 'Wild West' and 'rogue' image, say experts
By Chas Newkey-Burden, The Week UK
-
FTX founder Sam Bankman-Fried arrested in the Bahamas
Speed Read
By Catherine Garcia
-
iPod creator launches new crypto wallet as industry fallout continues
Speed Read
By Justin Klawans
-
Is cryptocurrency still a good investment?
opinion The sharpest opinions on the debate from around the web
By Justin Klawans