Do not invest your retirement funds in Bitcoin, ex-Chancellor Lord Hammond advises

<p>Lord Hammond, the former Chancellor, has urged armchair investors to exercise extreme caution when investing in cryptocurrencies – despite having taken an advisory role at a British digital currency specialist.</p> <p>Hammond joined Copper, a company that develops cryptocurrency trading tools for institutional investors, as a senior adviser in October. He did, however, warn retail investors against investing in cryptocurrencies such as Bitcoin and Ethereum.</p> <p>He told The Mail on Sunday: 'If a member of my family asked me [whether to invest in crypto], I believe what I would do is point them to the fact that large and reputable established asset managers are increasingly dipping their toes. However, it is only a toe in the water, it represents a minuscule portion of their asset base that is exposed to a highly volatile asset class.'</p> <p>'It is almost certainly not suitable as a mainstream investment category for retail investors,' he added. I know numerous people who have a small exposure to crypto assets but have written it off. It is money for gambling. I believe that individuals should exercise extreme caution. Many consider them to be more akin to gaming than to serious investing.'</p> <p>Copper was founded in 2018 and was valued at $3 billion last month following a $500 million funding round. The British firm assists investors in defending their cryptocurrency holdings against cybercrime. Hammond advises the company on strategic matters and promotes the UK as a digital asset hub. Investor demand for cryptocurrencies and digital assets such as 'non fungible tokens' – which are purchased online – is increasing.</p> <p>However, punters can be taken aback by wild price swings. Bitcoin is up 75% this year but is down 11% this month, trading at £38,000.</p> <p>Hammond stated that he would not join a company focused on retail cryptocurrency trading, but that the 'distributed ledger' technology that underpins digital currencies will 'eventually encompass the entirety of what we currently refer to as