If you're a cryptocurrency enthusiast, then you must have tracking your favorite cryptocurrencies currently as the market is in uptrend after so much downtrend facing because of China's crypto exchange ban as well as Mr. Jamie Dimon's crucial statement against Bitcoin.
Last week, cryptocurrencies remained majorly in downtrend and some even crossed their All Time Lows because of China FUD. For a few days, market is slightly recovering and still in green at the time of writing this. If we look at the current market capitalisation, then it is trading strongly at a whopping $136 Billion.
Now, when things are about to settle down, a new statement has come from Mr. Fred Wilson, the Co-founder of Union Square Ventures.
This statement goes something like this:
"I am certain the big crash will happen. I don’t know when it will happen and I think it may be some time before it does."
Well, this is another bold statement from a well-known person against the popularity of Bitcoin, or cryptocurrencies in general.
Let's have a look at Union Square Ventures First:
Union Square Ventures (USV) is an American based Venture Capital Firm which is well-known in Capital investment industry and it manages the assets valued $1 Billion. This firm is recognized as one of the top Capital Venture Firms in the World quoting 13.9 times returns annually. Also it is co-founded by Mr. Fred Wilson, one of the top venture capitalist in the World, who is recognized for his exceptional skills in Venture Capital industry.
So, all in all we can say that USV has a World Wide recognition and Mr. Fred Wilson is a well-known man.
Mr. Fred discussed that he had seen the dot com Bubble in early 90's as well as in 2000. He had lost 90% of his wealth in dot com bubble and he knows very well at what point an industry is in a Bubble or not.
Through his experience, he said that cryptocurrency market is in a huge bubble right now and this bubble can burst anytime. So, it would be better for investors to diversify their portfolios among various investment instruments, not just only in cryptocurrencies.
Although, he advised people to keep 10-20% investment in cryptocurrencies but not more than this. He wants people to learn from his mistakes and not to repeat them.
Well, I guess his word of advice is really worth trying as crytpocurrencies are highly volatile and anything can happen anytime. It's just a matter of a rumor, fake news, or simply a FUD.
So, keep your investment safe and diversified and always use your due diligence while making an investment in crypto space as it is prone to many scams, hacking and conspiracies.
Thank you !!
