It’s been a rough couple of days for the world of cryptocurrencies as we have seen a huge plunge in their value over last month. Although all the major currencies are recovering slowly, no one should forget the fact that a couple of days back, almost $100 billion was wiped from the cryptocurrency market in a single day. If that’s not a sign of volatility, I don’t know what is.
Despite the high volatile nature of cryptocurrencies, there seem to be a lot of people who are still investing their hard-earned money, in a bid to get cash in quickly. If you are one of those guys, you might want to pay heed to Vitalik Buterin, who is the founder of Ethereum, the second largest cryptocurrency in the world by value. In a tweet, Buterin warns about the volatile nature of 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.”
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
It’s good of Buterin to warn people about the risks of investing in cryptocurrencies as the point might just hit home when it comes from the founder of the second largest cryptocurrencies in the world.
Right now, the cryptocurrency market is highly volatile and we should only invest the money that we can afford to lose. If you are thinking of investing your life savings, please don’t do so without expert backing. Yes, there is a chance that you will become a millionaire, but there is also a chance that you will become penniless and lose everything.