Vitalik Buterin founder of Ethereum warned on Saturday that cryptocurrencies are a new and volatile asset class and could fall violently at any time.
“Reminder: cryptocurrencies are still a new and hyper-volatile asset class, and could drop to near-zero at any time,” Vitalik Buterin said on Twitter. “Don’t put in more money than you can afford to lose.”
Buterin added: “If you’re trying to figure out where to store your life savings, traditional assets are still your safest bet.”
Cryptocurrencies have been extremely volatile and we recently saw severe sell-off which saw the market lose as much as $100 billion in market value in a single day.
Buterin is not the first to warn against the possibility of a major loss from cryptocurrency investments.
On January 28th Wall Street veteran Peter Boockvar predicts an epic crash will hit the cryptocurrency market, which could wipe out more of 90% of the value of Bitcoin.
Boockvar is the chief investment officer at Bleakley Advisory Group and was interviewed by CNBC, “Futures Now.” – “When something goes parabolic like this has, it typically ends up to where that parabola began”
“I wouldn’t be surprised if over the next year it’s down to $1,000 to $3,000” he added. That would be a 90% drop from current levels and where the cryptocurrency was trading 12 months ago. That’s where Bitcoin, the largest cryptocurrency player, was trading less than 12 months ago. On 26 Jan, a Friday afternoon, Bitcoin was trading above $11,000.
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