Bitcoin’s rise last year caught the attention not just of crypto-enthusiasts but the media as well. While bitcoin and cryptocurrencies have been around for more than half a decade now, it was in 2017 when the concept really entered the mainstream. What is bitcoin? Before, people have no idea. Now, many still don’t have an idea, but many are interested. Many have also already put some money on cryptocurrencies. (Read: What is bitcoin?)
But is it wise to put money so much on bitcoin and cryptocurrencies? Is it a good alternative to traditional life savings? For today, we will leave that question to be answered by an important member of the cryptocurrency community.
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Mr. Vitalik Buterin is the co-founder of the Ethereum network, whose ETH consistently ranks in the 5 most valuable cryptocurrencies in the world.
We first reported Mr. Buterin back when he warned people about scams in cryptocurrencies and ICOs.
He was critical of the hype surrounding cryptocurrencies. According to him, there are so many crypto projects that promise to help ease transactions, make life better through smart contracts, and ultimately help the unbanked. When the crypto-coin market hit $0.5 trillion in 2017, he wondered aloud if they really earn it and asked the hard question:
How many unbanked people have we banked?
Cryptocurrency or Life Savings?
Due to the hype surrounding cryptocurrency and its extreme volatility, Mr. Buterin thinks the safest way to store your life savings are still traditional assets.
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.
What are traditional assets?
These are well-known investments where you can put your money. Examples of which are your savings account, time deposits, bonds, real estate, and company stocks. This is in contrast with alternative investments such as metals (like gold) and, yes, cryptocurrencies.
Should you follow Mr. Buterin’s advice?
Mr. Buterin’s advice is no different from the ones we mention at the end of every article here at Bitpinas.com. It is also the same advice of the bitcoin pioneers in the Philippines. Never put so much money (more than you can afford to lose) in cryptocurrencies. And always, always do your research. (Read: Bitcoin Pioneers on Investing in Cryptocurrencies).