Coinbase's CEO Warns Newcomers To Crypto To Jump In Slowly

Matty-Sways

Brian Armstrong is concerned about cryptocurrency newcomers losing in a big way.

“We cannot emphasize enough how important it is to understand that investing in crypto is not without risk,” Brian Armstrong, CEO of Coinbase, wrote.

“The market can move in either direction much faster than equity markets,” he said.

He wanted to highlight the incredible volatility traditional investors aren't accustomed to with other products they may see in their retirement funds.

“We likewise caution investors who may be focusing on short-term speculation and encourage customers to seek out resources and consult financial advisers to better understand the risks associated with investing in cryptocurrencies,” Armstrong said.

During Bitcoin’s last run-up, in 2017, he told Fortune for a cover story on the cryptocurrency’s stupendous rise that “we are probably in a bubble.”

In 2017, the market value of all cryptocurrencies slightly exceeded half-a-trillion dollars. Today, the industry’s total market value has exploded above $670 billion as of press time.

Industry observers have noted the latest run is different from previous jumps as more large investors and corporations are getting in on the digital investment. Fintech-trailblazer Square, tech firm Microstrategy, and life insurer Mass Mutual are among the companies that have bought up Bitcoin. Also many hedge funds and asset managers are buying up Bitcoin.

Ultimately, Armstrong tells people not to do anything too rash during this moment of exuberance. “For those who believe in the potential of crypto, we also all have to believe that we’re still in the very early stages and that there’s a lot more to come,” he said.

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Comments (2)
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ktkat1949
ktkat1949

Crypto is crapo. I wouldn't touch it if they were giving it away for free. It is just one giant pyramid scheme and the ones on the bottom will always get screwed.

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Tagler

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