Ethereum Co-Founder Warns Cryptocurrencies Could Drop to Near Zero
The co-founder of the second largest cryptocurrency by market cap, Vitalik Buterin cautioned crypto enthusiasts via a tweet that cryptocurrencies “could drop to near zero at any time.”
Vitalik Buterin States a Bitter Truth
According to Buterin, cryptocurrencies are “hyper-volatile” owing to the fact that they are still a growing asset class. Even new inductees to the crypto market are beginning to see the wisdom in his words, as the price has both dropped dead and been resurrected just within the last two months.
Additionally, the Russian-Canadian programmer believes that cryptocurrencies are still not in a position where investors can blindly invest money. Buterin advises investors not to spend money that you can afford to lose, thus iterating veteran trader sentiment.
Cryptocurrencies had a great last year where almost every coin experienced an upswing. But, it is common knowledge that cryptocurrencies are erratic and as a result, investors should exercise extreme caution even in bull markets.
Buterin’s full tweet reads,
“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.”
Traditional Assets Still the Safest Bet
In the past, similar sentiments were echoed by Xapo CEO Wences Casares, who pointed that Bitcoin is an “interesting experiment” and has over 50 percent chance to succeed in its philosophical and technological thrust. Therefore, he recommended none to hold the number of digital assets that they could not afford to lose.
Buterin, a realist by nature, stated that traditional assets are still the safest option for investment. Crypto enthusiasts have responded in a mixed manner, where some have praised Buterin’s advice while others regarded it as an act of spreading panic or “Fear, Uncertainty and Doubt” (FUD).
It is not the first time the blockchain developer spoke on prices and market sentiment. In December 2017, Buterin tweeted “*All* crypto communities, ethereum included, should heed these words of warning. Need to differentiate between getting hundreds of billions of dollars of digital paper wealth sloshing around and actually achieving something meaningful for society.”
His concern that the technology will be washed away by Lamborghini memes and toxic tribalism may be at the heart of his most recent tweet.
Buterin’s sentiments on volatility also appear to align with government regulators across the globe who intend to safeguard investors from losing their life saving by investing into cryptocurrencies.