Skip to main content

Cryptocurrency not an ideal long-term investment, warns Ethereum co-founder

Looking for good financial advice? Vitalik Buterin, co-founder of the digital currency Ethereum, jumped on Twitter to offer just that, but it’s probably not the advice you’d expect. He believes traditional assets are still best for those who want to generate lucrative interest from long-term investments. Cryptocurrencies on the whole are still in the infancy stage, and don’t generate interest.  

“Cryptocurrencies are still a new and hyper-volatile asset class and could drop to near-zero at any time,” he states. “Don’t put in more money than you can afford to lose. If you’re trying to figure out where to store your life savings, traditional assets are still your safest bet.” 

Buterin, a cryptocurrency researcher and programmer, proposed Ethereum at the end of 2013. He helped get the platform up and running in July 2015 after selling an initial run to early adopters in 2014. Ethereum is the overall decentralized transaction platform while Ether are the digital coins. Currently, just one coin’s value is around $939, but that same coin was worth a mere $13 just a year ago. 

The problem with cryptocurrency is that its value is volatile. For instance, on November 19, 2017, one Ether coin valued at $355 in real-world cash. By January 13, 2018, the value skyrocketed to $1,139 and then plunged to $591 per coin by February 5, 2018. Investing in cryptocurrency is obviously risky business. 

Bitcoin isn’t immune to severe rises and falls either. On November 12, 2017, Bitcoin had a value of $5,969. That number jumped up to a hefty $19,189 on December 16, 2017, and then tumbled down to a $7,000 value by February 6, 2018. Right now, Bitcoin’s worth sits at $11,083, but that could rise or fall at the drop of a digital dime. 

Cryptocurrency platforms such as Ethereum and Bitcoin rely on blockchains, which are networks of data blocks protected by cryptography. This data doesn’t reside within a central location, nor is it managed by one specific entity. Instead, these data blocks are “chained” between participating PCs scattered across the globe. This data cannot be altered or hacked because all blocks have a cryptographic hash of the previous block along with their transaction data and a timestamp. 

Cryptocurrency is becoming a popular form of transaction because digital monies aren’t managed by a central entity, like a bank or government. Your transaction data also isn’t stored on a specific server that could be hacked. Even more, data stored in blockchains can’t be altered, promising a highly secure, anonymous transactional platform. 

Investing in this emerging technology does sound promising, but as Buterin points out, now may not be the time for those looking to build a large investment value over time. Cryptocurrencies appear to be a high-risk investment that require constant monitoring to determine the ideal time to purchase and/or sell digital coins. 

Meanwhile, Buterin is having problems on Twitter. Scammers are creating fake accounts using his profile picture to make cryptocurrency transactions. More specifically, they request a specific amount of digital currency in return for a larger amount. “Don’t trust anyone asking for or offering money on Twitter,” he warns. 

Kevin Parrish
Former Digital Trends Contributor
Kevin started taking PCs apart in the 90s when Quake was on the way and his PC lacked the required components. Since then…
The 5 best Wi-Fi adapters for PC in 2024
The Ugreen AC1300 Wi-Fi adapter in a desktop PC.

Whether you're designing it yourself or getting a pre-built PC, it can be easy to get a computer and realize that it doesn't have a native Wi-Fi adapter. Or, maybe it does, but you're internet speeds are getting faster, game downloads are getting bigger, you've already upgraded your router and need an adapter to match your newfound power requirements. No matter the situation, an external Wi-Fi adapter that you can add to your PC setup or even laptop setup will be worth your time. Here, we investigate the best Wi-Fi adapters for PC use. Most are incredibly affordable and just snap into a free USB port and start working.
The best Wi-Fi adapter for PC in 2024

Buy the

Read more
How to pin a website to the taskbar in Windows
A man sits, using a laptop running the Windows 11 operating system.

Windows includes many interesting tools, but if you’re like many people, more and more of your digital life is happening in your web browser and nowhere else. That being the case, you’ll want to keep your most important websites close at hand. The easiest way to access them in Windows is the Start menu and the taskbar, treating them more or less like programs in and of themselves.

Although easy overall, getting a website from your browser to your taskbar is slightly different depending on which browser you’re using.

Read more
This LG 34-inch QHD gaming monitor is discounted from $1,000 to $529
The LG UltraGear monitor on a table.

If you want a top-tier display to go with your gaming PC, check out the 34-inch LG UltraGear QHD curved gaming monitor. Not only will it be a worthy screen for your powerful gaming desktop, but it's also currently on sale from Walmart with a $471 discount that nearly halves its price to just $529 from $1,000. We're not sure how much time is remaining before this offer expires, but like most monitor deals of this caliber, it will probably end sooner than you think. Buy it now if you don't want to miss out.

Why you should buy the 34-inch LG UltraGear QHD curved gaming monitor
Gamers who are playing the best PC games should have a screen that will let you appreciate modern graphics. That's certainly the case with the 34-inch LG UltraGear QHD curved gaming monitor, as its quad HD resolution promises sharp details and lifelike colors, while its curved screen fills your peripheral vision for more immersive gameplay. The gaming monitor also features a 144Hz refresh rate, which is at the top of our computer monitor buying guide's recommended range, and 1ms response time. With these specifications, you'll enjoy smooth movements and quick reaction times, which are extremely important in multiplayer matches.

Read more