Catastrophic drop in cryptocurrencies looms

2018/2/27 7:18:41

Crypto experts such as Ethereum co-founder Vitalik Buterin and Ripple CEO Brad Garlinghouse have warned about the big drop. For example, Buterin tweeted on Saturday: “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.”

 

 


By  Michael Jermaine Cards for Born2Invest, Feb 26, 2018

 

As a new type of digital-based asset, cryptocurrencies are unlike others of its kind such as cash, bonds, stocks, and gold. Having no tangible representation in the real world, they are very vulnerable to market speculations. As a result, these digital currencies are highly volatile assets.

 

It was only in December 2017 that Bitcoin briefly reached the $20,000 value per coin. But it plummeted to around less than half the value since then while the market was worrying about government regulations. The extreme volatility has prompted crypto experts like Vitalik Buterin to issue serious warnings that the value of the asset might become near worthless anytime soon, per CNBC.

 

Warnings of crypto experts

 

Considered as a boy genius in the crypto sector, Buterin co-founded the blockchain platform Ethereum when he was just a teenager. Hence, his opinion is something that carries authoritative weight.

 

On the other hand, Buterin is not the first digital money industry expert who issued a similar warning. Earlier this month, Daily Express reported that Ripple CEO Brad Garlinghouse expressed his apprehensions that the bubble created for so long by the digital money may soon burst into nothingness.

 

Buterin echoed this concern and said that the traditional assets are still ideal for protecting people’s life savings. He tweeted on Saturday: “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.”

 

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https://born2invest.com/articles/catas ... ic-drop-cryptocurrencies/

 

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