Paranoia, speculation, and taking a high risk—these are some of the things that make crypto investing different from other forms of assets. Bitcoin has been shaky over the last couple of weeks. In fact, it hasn’t been doing well after it has reached its peak. And for many reasons, a lot of experts have been worried even saying that the crypto bubble has burst already.
But for the first time since January, Bitcoin was able to reach $11,000. Should you actually celebrate that Bitcoin is now back to its bullish ways? There are even predictions that expect Bitcoin to surpass its former highs based on its corrections over the years.
But if you will ask Vitalik Buterin, the man behind Ethereum, he mentioned that “cryptocurrencies are still a new and hyper-volatile asset class, and could drop to near-zero at any time”. He also mentioned that “don’t put more money than you can afford to lose”. Come to think of it, it was a sound advice. Given all the possible things that can happen from hacks to regulatory changes, investors still don’t know what could be the next thing that could happen to their crypto investment.
Buterin even mentioned that “if you are trying to figure out where to store your life savings, traditional assets are still your safest bet”.
Bitcoin and other cryptocurrencies experienced a drop after countries, especially those in Asia, have changed their stance when it comes to cryptocurrencies. India banned cryptocurrency activity along with China. In fact, China isn’t even done in its crackdown now that they banned both local and international cryptocurrency exchanges. China has also searched for miners based on their power consumption.
From several sell-offs, the cryptocurrency market was able to recover slightly. In fact, there was a day wherein as much as $100 billion in market value was lost from the entire market. Bitcoin was also below $6,000 a week ago before being able to recover above $10,000 this week.
Buterin is one of the most popular figures in the crypto market to be impersonated by scammers on Twitter. What these scammers do is to pose as Vitalik Buterin and promote questionable cryptocurrency offers. These scammers then ask the users to send cryptocurrencies in large amounts.
For this reason, Buterin warns users to never trust transactions on Twitter. Buterin isn’t the only one that is usually impersonated on Twitter. Elon Musk as well as the chairman of Commodity Futures Trading Commission, J Christopher Giancarlo have been impersonated by these scammers.
It is important to take a closer look at Buterin’s advice. What he mentioned isn’t really something that is beyond the realm of possibilities.
It isn’t the first time that he has raised these issues. In fact, he has warned investors in the past about potential bubbles and volatility involved in the cryptocurrency world. He even blasted those individuals who were flaunting the wealth that they’ve accumulated from cryptocurrency. He mentioned that people should instead think of blockchain technology’s potential and how it could achieve “something meaningful for society”.