SoFi’s director of investment strategy, Liz Young, advised US investors to stay away from cryptocurrencies at this time due to its volatility. At Global Web Wire we explain all the details.
The big question for investors in the United States is: Where to put the money right now? When answering this question, cryptocurrencies inevitably arise as an investment option , because despite the fact that they have shown a dismal performance over the last year, thousands of consumers expect them to improve in the future.
For Liz Young, director of investment strategy for the company SoFi, the answer in this regard seems clear: ” The best thing is to get away from them (from cryptocurrencies) at this time ,” he said in an interview with Fox Business.
“I have always said that small amounts of money can be invested in cryptocurrencies, since these are not assets in which you should put your mortgage or rent money. Obviously, there is a reason for this: we have seen cryptocurrencies go through a period of inflation and crash. These are extremely risky assets, and if you have invested in them, I would recommend staying away from them at this time ,” Young said.
In fact, Young would only recommend investing in cryptocurrencies to those “who have the stomach to get through this period and who have confidence in it for the very long term.”
The volatility of cryptocurrencies has been evident in recent months. Just last week, Bitcoins, considered to be the most important cryptocurrencies in the world due to their large market capitalization, fell to their lowest price in two years , reaching a value of $15,480 . This is its lowest price since November 11, 2020.
In fact, the entire cryptocurrency ecosystem is in crisis, after a year that many specialists have called a “crypto crash” or “crypto winter.” The cryptocurrency market currently has a market capitalization of approximately $900 billion, having once been worth, as an industry, approximately $3 trillion. Simply put, more than two-thirds of the value of all cryptocurrencies has disappeared .
And the lack of confidence in cryptocurrencies has deepened after the collapse of the company FTX, a cryptocurrency exchange company whose debacle has caused great commotion in recent weeks, since it was a well-known company, valued at $32 billion dollars, They went bankrupt in a matter of days . The fall of this company has meant millions of dollars in losses for thousands of investors , since apparently a group of hackers stole approximately $477 million dollars in cryptocurrencies from this platform.