Cryptocurrencies Could Crash At Any Time
Ethereum co-founder Vitalik Buterin recently issued a warning about investing in cryptocurrencies. He stated, via Twitter, that although digital currencies are an emerging asset class, they “could drop to near-zero at any time”. Therefore, he advised crypto enthusiasts to invest only as much as they “can afford to lose”.
According to Buterin,“traditional assets” are still the best choice of investment. Notably, in December 2017, the skilled computer programmer and writer said that the crypto craze was similar to paying an outrageous $450 million for Leonardo Da Vinci’s “Salvator Mundi” painting. Previously, the Ethereum co-founder also remarked that cryptocurrencies and their underlying technology has been overhyped, and implied that it has been given more credit than it deserves.
Twitter Users Think Vitalik Is Spreading “Unnecessary Panic”
He then went on to add that crypto-related platforms must be drastically improved. Furthermore, he urged the crypto-community to focus on actually learning about how cryptocurrencies work, instead of always obsessing over their prices, and thinking of them as a way to get rich. In response to his latest statements regarding cryptocurrencies, a number of Twitter users felt that he was spreading “unnecessary panic”.
A user by the name of FAB-IT Solutions tweeted that “Vitalik every one knows that by now. By sending such messages all you do is create unnecessary panic”. Another user asked Buterin who was responsible for creating such fear in his mind. The same user, ssfaser, then sarcastically remarked, “sure global equity and bond markets are the way to go…NOT”. Meanwhile, Crypto Capilla even questioned whether Buterin was “okay”.
Crypto Enthusiasts Disagree With Ethereum Co-Founder
It seems that some people have more faith in cryptocurrencies, particularly Ethereum’s ETH, than Vitalik Buterin himself. In fact, Chin Khac Le tweeted, “No…ETH is my safest storage”. His comments were obviously in reference to Vitalik recommending that it’s safer to keep your savings in traditional assets. Additionally, there was one crypto enthusiast who felt it would actually be better to lose money in the crypto-market than to live with the “regret” that you never invested in it.
Even though this last statement by Dario osorio might not make much sense, one could argue that many crypto investors are a lot more bullish about cryptocurrencies than the Ethereum co-founder. However, Vitalik does appear to have some legitimate concerns regarding the current state of the crypto industry, For instance, digital currencies are widely being used to aid in carrying out a number of illegal activities such as money laundering. Furthermore, criminals have also hacked into many crypto-exchanges and stolen hundreds of millions of dollars.
There are other concerns about crypto-related technology such as the large amounts of electricity being consumed due to cryptocurrency mining and relatively slow transaction processing times, especially when using Bitcoin. These problems are significant; and, it might be why Vitalik recently cut down his involvement with Fenbushi Capital, a Chinese venture capital firm that invests in Blockchain startups, to focus on further developing and improving the Ethereum network.