I don’t mean to scare you but if you are thinking of investing a good chunk of your savings in some booming cryptocurrency, consider once more. The founder of Ethereum, Vitalik Buterin, has warned that the cryptocurrencies could drop to zero any time.
He put this message out in the form of a tweet. It said that cryptocurrencies are a new and “hyper-volatile” category of assets. So, it’s sensible to put only as much money that you can afford to lose.
“If you’re trying to figure out where to store your life savings, traditional assets are still your safest bet,” the 24-year-old Russian-Canadian programmer added.
For those who are already dealing with cryptocurrencies, this volatile nature should be a common knowledge. A year ago, one Ether coin was worth $13, and today it’s about $1,000. It has also gone as low as $580 in the past one month. Same is the case of other cryptocurrencies.
Reminder: cryptocurrencies are still a new and hyper-volatile asset class, and could drop to near-zero at any time. Don't put in more money than you can afford to lose. If you're trying to figure out where to store your life savings, traditional assets are still your safest bet.
— vitalik.eth (@VitalikButerin) February 17, 2018
The reaction to Buterin’s advice on Twitter seems mixed. While some have called it a good advice for any kind of investment, others have bashed him for creating unnecessary panic among the investors and enthusiasts.
It should also be noted that Buterin has warned the investors about such risks in the past as well.
What are your views on Buterin’s advice? Share your thoughts in the comments section and keep reading Fossbytes.