The co-founder of Ethereum is concerned that too many new crypto investors are learning the wrong lessons from wealthy crypto enthusiasts. “The danger is that you have these $3 million monkeys and it becomes a different form of gambling,” Vitalik Buterin said in an interview with TIME, referring to the rising value and flamboyant excesses associated with the Bored Ape Yacht Club NFT community. Here are the details…
Comments on the crypto money ecosystem by Vitalik Buterin
Cryptocurrency is much more risky than traditional investments due to its unpredictability and volatility. For this reason, investment experts emphasize that it is important for crypto investors to clarify their goals and expectations before buying. One of the most influential people in crypto, Buterin watched the network he created evolve with mixed emotions. He acknowledges that while Ethereum is intended to redesign the web and allow for any use from fairer voting systems or peer-to-peer borrowing and lending, Ethereum’s vision has become vulnerable to human greed. “Crypto has a lot of dystopian potential if applied incorrectly,” Buterin said.
While cryptos are seen as a tool for smuggling, fraud and large-scale fraud inequalities have seeped into the ecosystem, including a noticeable lack of gender and racial diversity. But despite all this, Buterin remains optimistic. Above all, he told TIME he wanted Ethereum to challenge the concept of centralized government and for Silicon Valley to disrupt control over everyone’s digital lives.
What should be considered when investing in cryptocurrencies?
If you’re investing in or considering buying crypto, there are a few things to consider, experts say. If you are considering investing in crypto, you need to evaluate your situation and what you aim to achieve. Also, if you’re in a good place financially, focus on improving your crypto knowledge and understand what you’re investing in before you buy. Advocates who see long-term value in cryptocurrency point to the underlying blockchain technology and its potential to spur innovation in traditional finance and other industries.
Crypto is a highly volatile, speculative asset. This is why you need to have a high risk tolerance to buy or invest in cryptocurrency. Also, according to experts, there are more reasons why traders should play a stable long game rather than trying to make quick money. If you’re into long-term business, you don’t have to worry about short-term fluctuations. As we have reported as Kriptokoin.com, experts say that you should only invest as much as you want to lose.
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