Key highlights:
- Coinbase CEO Brian Armstrong reminded users that investing in Bitcoin and crypto is not without risk and danger
- Armstrong states the risks of Bitcoin and crypto are higher than what we see with traditional assets
- Armstrong pointed to the volatility of digital assets as something that should be considered
Coinbase CEO reminds users that investing in crypto comes with risks
Recently, the price of Bitcoin has increased sharply, and BTC is currently traded at historically high prices. Currently, Bitcoin’s all-time high is above $24,000, and the move above $20,000 was met with euphoria in the cryptocurrency community.
Amid the enormous gains that BTC has recorded this year, Coinbase CEO Brian Armstrong warned about the risks of investing in Bitcoin and cryptocurrency. He expressed his satisfaction with institutional investors’ presence in the crypto space, but he believes that crypto is still not risk-free.
Armstrong pointed to the bubble of BTC in 2017. The price of BTC climbed from $1,000 to around $20,000 that year. He believes investors should pay attention to the aggressive volatilities of this category of assets, as prices can dramatically change upwards or downwards within a very short period of time.
Coinbase is looking to go public, recently announcing that it filed a confidential S-1 with the SEC. The crypto exchange’s most recent funding round was a Series E in 2018, in which Coinbase raised $300 million at a valuation of $8 billion.
The volatility of Bitcoin
The BTC price started the year at around $7,000, and reached below $4,000 in March when the pandemic affected practically every market on the planet. However, Bitcoin staged a significant recovery and rose above $10,000 in July. After that, Bitcoin continued its growth, and now we are experiencing new ATHs.
The main reason for Bitcoin’s growth in recent months is the presence of institutional investors in the market. While Bitcoin was viewed with heavy skepticism in the past, more and more institutions are now considering it seriously as a potential haven against inflation.
The crypto community is understandably excited about Bitcoin’s new peaks, and there is also plenty of speculation on whether alternative cryptocurrencies or »altcoins« will soon follow Bitcoin’s lead. With Bitcoin now in uncharted territory, nothing is off the table and we could see some very exciting action in the cryptocurrency markets next year.
