Forget Mega Millions and Powerball.
Some people are getting rich this new year by buying up Bitcoins.
But before you give it a try, consumer reporter John Matarese has a buyer beware, so you don’t waste your money.
Have you heard of bitcoin, the digital currency?
If so, you may have heard that it recently doubled in price.
But before you try to buy some, buyer beware.
Bitcoin is red hot.
This digital world currency ran up from $20,000 in December to $40,000 by Jan. 10, making big money for some investors.
But it then dropped 20 percent, burning investors who arrived late at the party.
Fortune magazine says Bitcoin is a bubble that has popped several times.
Most recently in March 2020, when it plunged 60 percent.
CNBC’s Jim Cramer says it can be part of your investments and says he owns some.
But he says only play what you can afford to lose, just like in a casino.
But from the “doesn’t that stink file,” what can happen when a bubble bursts.
Most younger investors may not remember the 1999 dot.com bubble, when any stock with a dot.com at the end doubled in days.
It all crashed in the dot.com bust and late investors lost fortunes.
The poster child was pets.com
Bank of America calls bitcoin "the mother of all bubbles," so invest accordingly.
It's not a scam, and you could make big money.
But you could lose big money too.
Could bitcoin soon double or triple again?
Sure.
But it could also plunge like it has several times before, so be careful and don’t waste your money.
