Cryptocurrencies are a nascent asset class as well as could fall violently at any time, the founder of blockchain network Ethereum warned on Saturday.
“Reminder: cryptocurrencies are still a brand new as well as hyper-volatile asset class, as well as 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 recovered slightly by a severe sell-off which saw the market lose as much as $100 billion in market value in an individual day. Bitcoin recovered to a cost above $10,000 last week after falling as low as $5,947.40 the week before.
In December, the Ethereum creator compared wild investment inside the cryptocurrency market to the record sum paid for the entire world’s most expensive painting, Leonardo Da Vinci’s “Salvator Mundi.”
Ethereum is actually a blockchain network; blockchain is actually the technology of which underpins cryptocurrencies. the item maintains a continuously growing record of cryptocurrency transactions across a decentralized network. The digital token of the Ethereum network is actually called ether, although the item is actually also often referred to as ethereum.