Elon Musk, CEO and founder of popular electric car company Tesla, has warned his more than 53 million Twitter followers to exercise caution when investing in cryptocurrencies.
The Dogecoin proponent took to his Twitter page today to tell his followers about the potential of cryptocurrencies. However, Musk did not fail to warn people to be careful with their investment in crypto assets.
“Cryptocurrency is promising, but please invest with caution,” the billionaire tweeted.
Attached to the tweet was a link to a video published by TMZ, where Musk advised crypto enthusiasts in February not to be reckless when investing in the asset class.
“People [especially DOGE investors] should not invest all their life savings in cryptocurrencies […] that is unwise,” Elon Musk said in the video.
However, he added that people who would like to speculate and have some fun can do so with cryptocurrencies because the assets have all it takes to be the future currency of earth.
For years, investors have been urged to only invest an amount they can afford to lose due to the high volatility associated with cryptocurrencies.
Recall that the January 2018 bull run saw Bitcoin (BTC) trade above $20,000 and later plummeted below $4,000 the following year.
The largest cryptocurrency has also had its fair share of volatility this year on several occasions, one of which was when it plunged from over $60,000 recorded last month to below $50,000.
The high volatility has prompted financial regulators to warn investors about the risks of their investment choices.
Andrew Bailey, the Bank of England (BoE) governor, reasoned recently that people who are willing to lose their money should invest in cryptos.
Investors Not Bothered Amid Crypto Rally
Interestingly, contrary to the BoE governor’s comments, cryptocurrencies have proven to be the best performing assets since the turn of the year.
Several crypto assets like bitcoin and ether have continued to set new all-time highs (ATH), with retail and institutional investors adopting them as a hedge against inflation.
Corporate investors have not been left out, with many like Elon Musk’s Tesla announcing groundbreaking Bitcoin purchases.
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Author: Lele Jima