WHAT’S THE REAL WORTH OF CRYPTOCURRENCY?
QI bought a cryptocurrency called ‘OneCoin’. How much is the one unit worth? How do I cash in these shares? Are they legitimate? I have read some mixed reviews and am at a loss.
AI’m afraid I am no expert on cryptocurrencies either. All I can do is describe what they are in principle and what some respected authorities have said about OneCoin.
A regular currency – like pounds or euro, for example – is issued by a central bank with a value based on the guarantee that the bank will redeem it if necessary, and the certainty that only a certain amount of euro, pounds or dollars have been issued.
A cryptocurrency is a virtual or digital currency that has been created by a computer. It relies on its rarity and security to create value.
The word crypto comes from encryption, which is the process of creating a complex and hard-to-replicate code.
There are a lot of advantages to cryptocurrencies, which explains the rapid growth in value of Bitcoin, which has even made it into the Oxford English dictionary.
‘Decentralised cryptocurrencies such as Bitcoin now provide an outlet for personal wealth that is beyond restriction and confiscation,’ the prestigious tome notes.
Although they are legal and used for legitimate purposes, cryptocurrencies are also anonymous and untraceable. And they are therefore also well suited for activities such as drug-dealing, money-laundering and tax evasion.
There were over $18bn worth of Bitcoins in circulation at the last count, each ‘coin’ worth $1,114 this week, according to a Coinmarketcap.com.
Its success has spawned 1,000 other ‘cryptocurrencies’, although none as successful as Bitcoin.
I’m afraid OneCoin wasn’t among the top 100 ‘cryptocurrencies’ listed on Coinmarket.com.
Several financial authorities, including the UK’s Financial Conduct Authority (FCA), have issued specific warnings concerning OneCoin.
The FCA said: ‘The City of London are currently investigating OneCoin. If you believe that you have been a victim of fraud in this regard, or have had dealings with OneCoin, then please contact Action Fraud or telephone them on 0044 300 123 2040.’
QI defaulted on some loan repayments and I can’t get an overdraft or a credit card. Which prepaid credit card would be best to use? I see one online but it costs €89 to join up.
AA prepaid credit card is a bit of a misnomer. You don’t get any credit as you can only use money you have already put into it.
It’s more like a debit card. And you should have one of these on your bank account anyway, which can be used to make online purchases cheaply.
If you do still want a pre-paid ‘credit card’ there are many with lower costs than the one you mentioned.
Comparison site Bonkers.ie lists three pre-paid cards, two of which have no initial or balance transfer fees. See below.
When it comes to top-ups, it gets a bit complicated with charges ranging from zero to €3.50 depending on how you top up. Check Bonkers.ie for details.