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. …