On December 16, 2020, a major rate hike of Bitcoin reached over $20,000 in valuation. This was a record-making moment in cryptocurrency history, as the Bitcoin rate has never been this huge. Given that, many trading enthusiasts started joining the Bitcoin race to gain profit. But, the high fluctuation is in a volatile position. So, many problems can arise for cryptocurrency users if they take the wrong steps.
The CEO of Coinbase, Brian Armstrong, is of a similar opinion. He stated his views in an interview on Wednesday. His message was mainly to the new crypto users. They are freshly joining the cryptocurrency exchange without much knowledge of the market statistics.
Words of caution
According to his statement, Armstrong and his Coinbase team have taken a full look into the cryptocurrency exchange market. After carefully assessing the fluctuation, the CEO believes that investing money in Bitcoin does have some risk.
He further mentions that the market of Bitcoin is not at its most stable position currently. So, even though the recent price hike is very interesting, there is a chance that the price can fall suddenly. This would occur quicker than the equity markets.
Many of the investors are also focused on short-term speculations in regards to the market. Armstrong states for them to act cautiously too. He asserts that seeking resources would improve their chances better and encourages his customers to do so. Also, he mentions the need for financial experts, prompting people to consult them for advice.
In his statement, Armstrong has hinted at the condition of his company in 2020 as well. It has seen many outages since many traders flooded its market to capitalize on the high volatility of Bitcoin. Furthermore, he has promised to fix the issues and always stay transparent about their shortcomings and market information.
Thus, their customers can make the right decisions after careful evaluation.