THE success of a teenager from County Durham who has made a “fortune” through cryptocurrency has brought the discussion about Britcoin back into the limelight.

Daniel Hendry, aged 16 and from Langley Park, joined the cryptocurrency craze after seeing stories of early investors making millions from investing in Bitcoin – the most widespread cryptocurrency at the moment – and has made £5,000 through his efforts.

But is it safe and could you get yourself into some serious problems if it goes wrong?

  • What is Bitcoin and how does it work?

Bitcoin, often described as a cryptocurrency, a virtual currency or a digital currency - is a type of money that is completely virtual.

It's like an online version of cash. You can use it to buy products and services, but not many shops accept Bitcoin yet and some countries have banned it altogether.

  • How do people get Bitcoins?

According to BBC, there are three main ways people get Bitcoins. You can buy Bitcoins using 'real' money, tou can sell things and let people pay you with Bitcoins or they can be created using a computer.

  • Why do people want Britcoins?

Some people like the fact that Bitcoin is not controlled by the government or banks.

People can also spend their Bitcoins fairly anonymously. Although all transactions are recorded, nobody would know which 'account number' was yours unless you told them.

In an online chat with social media users in January 2021, the world's richest man, Elon Musk, said he was a big supporter of Bitcoin.

He even went as far as to change his Twitter bio to "#bitcoin".

He has repeatedly shown his support to online currencies in recent years and caused major movements in their values due to his own personal wealth and influence.

This particular endorsement led to the value of Bitcoin to rise significantly.

  • Is it safe?

Martin Lewis said on The Martin Lewis Money Show: "Bitcoin is set up as a currency – a non-governmental currency – so you're meant to be able to spend it, but I'm presuming you're thinking of this not to spend but more as an investment, which is what most people are looking at.

"First of all, is it safe? Well, some people have lost money in their wallets. Like gold it can be stolen, and cryptocurrency is a bit like an equivalent to gold as it's a store of value of what people are putting in. You have to be very careful."

  • Can I make money investing in Bitcoin

While Bitcoin's value has recently soared to around £30,000, its value is extremely volatile and it has dropped to as low as around £300 in the past – so you shouldn't invest if you can't afford to lose the cash.

Martin said on The Martin Lewis Money Show: "As to whether it's any good – I don't talk about investing. The thing about investing – and Bitcoin is an investment – is that prices go up and prices go down. With Bitcoin, they go up massively and they go down massively. And the reason for stressing that so much is that you can make a fortune, but you may lose a fortune.

"So if you can't afford to lose the money that you put in, then do not invest in it. It's a gamble, like all forms of stocks and shares, and all forms of investment and putting money in gold. That's your choice, but if you do it the right way the investment should work for you, but it doesn't mean you won't lose money though."

  • Bitcoin scams

Martin said on TV: "You'll have seen adverts with me in for Bitcoin or Bitcoin trading. They are not Bitcoin, they are scams – don't touch them – if you see my face in an advert it's not true. Be incredibly careful to do your research and go for a legitimate source if you want your Bitcoin."