Students and cryptocurrency: the risks associated with the Bitcoin enticement

<p>The axiom "money is no object" has never seemed more accurate. In recent years, the evolution of cryptocurrency has radically altered the financial landscape. However, new studies indicate that an increasing number of students and teenagers are investing in this new currency without a thorough understanding of its potential benefits and risks.</p> <p>A cryptocurrency (or crypto) is a type of digital currency that, like any other type of currency, can be used to purchase goods and services. What makes cryptocurrency unique is that it utilises a digital record of transactions that is then replicated and distributed across the entire network of computer systems that comprise the blockchain. In theory, this decentralised blockchain should make changing or cheating the system nearly impossible. This also means that cryptocurrency is not controlled or regulated by a central authority or administrators, whereas traditional currency is issued and backed by central banks.</p> <p>Bitcoin is one of the most widely used cryptocurrencies. It has been extremely successful over the last year, with the price of bitcoin reaching over £45,000 in April and a current market capitalisation of over $850 billion. This success has increased the appeal of Bitcoin to both younger and more seasoned audiences.</p> <p>According to recent surveys conducted by UniHomes and Save the Student, student interest in and investment in cryptocurrency has risen significantly over the last year. Around 6% of students currently invest in cryptocurrencies, and two-thirds have considered doing so.</p> <p>The primary reason for this increase is the inability of students to maintain financial stability during the pandemic. The unstable job market, loss of parental earnings, and low-interest loans have all contributed to students seeking alternative sources of funding for university life. By leveraging celebrity endorsements and influencers, social media platforms such as Instagram and Tiktok have also highlighted the success of young people investing