Ethereum founder Vitalik Buterin recently sent his Twitter followers a warning on any potential cryptocurrency investments they may plan on doing. Via a tweet, the 24-year-old Russian-Canadian stated that cryptocurrencies could “drop to near zero at any time.”
Adding to this, his tweet advised his followers not to invest any more than they can afford to lose on cryptocurrencies, as they are “still a new and hyper-volatile asset class.” He ended his tweet by stating that, to store one’s life savings, traditional assets are still the safest bet people can make.
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.— Vitalik Buterin (@VitalikButerin) February 17, 2018
Buterin’s advice echoes that of other prominent crypto personalities, although some believe cryptocurrencies are a safer bet than fiat long-term, as a truly deep financial crisis can lead to hyperinflation. Venezuela and Zimbabwe are two countries that serve as examples of what can happen when governments failin their monetary policies.
Reactions to the founder’s tweet varied. Some argued cryptocurrency enthusiasts are well aware of the risks, and that he was merely creating “unnecessary panic” by pointing this out.
Some of his followers outright disagreed with him, as they would “rather live with disappointments than regrets,” pointing out that they would rather risk and lose thousands of dollars, than later on wish they had risked the money and made a profit.
Twitter user Quintessential Mind argued traditional assets aren’t the safest bet, as we live in the “most volatile time in history,” and “crypto is the answer to the maladies of the current system.” His advice to potential investors is to do their homework before they put their money on the line.
Buterin’s words are notable, as Ethereum users have been losing millions of dollars worth of the cryptocurrency to scams, and due to the poor security of many ICOs. Last year, an incident with Parity Technologies’ multi-signature wallets led to $160 million in frozen Ether. Discussing a solution to the problem led to rising tensions, as activity on GitHub shows.