Vitalik Buterin: Crypto Could Drop to Zero, Traditional Assets Are the Safest Bet

Ethereum’s creator, Vitalik Buterin, has warned his followers on Twitter that they shouldn’t completely rely on cryptocurrencies. In a tweet posted today, Buterin wrote:

Reminder: cryptocurrencies are still a new and hyper-volatile asset class, and could drop to near-zero at any time. 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.

— Vitalik Buterin (@VitalikButerin) February 17, 2018

Buterin is an avid supporter of blockchain technology and created the smart contracts based platform Ethereum in 2013 to solve many of the problems faced by people in a centralized network. This is the reason why his followers were shocked by his warning. A crypto user even blamed Buterin for posting this tweet as instructed by his lawyers or for publicity, “This has been either drafted or suggested by a lawyer, but nevertheless is full of common sense and imho SOLID advice.” Buterin immediately denied those claims and stood by his words.

Nope, no lawyers involved! Actually, no PR department either, literally just me; nobody reviewed or looked at the tweet before I made it.

— Vitalik Buterin (@VitalikButerin) February 17, 2018

He was even accused of losing hope in cryptocurrencies by other investors.

Many people like me are investing in cryptos because we believe in the technology and the idea of making payments without control of any central institution. Your thinking is a demonstration that you are loosing the battle against speculators

— Daniel Romero-Suarez (@DanielERomeroS) February 17, 2018

Others wondered whether he had sold his Ethereum as its value declined earlier this year.

Sounds like someone sold the dip

— Zissou™ (@ZeusZissou) February 17, 2018

But some people supported his statements with their own perspectives on cryptocurrency.

Yes true, if you have disposable funds perhaps this is an opportunity of a lifetime. So just be balanced in your approach. Don't be a greedy human. Be happy with what you can invest and say thanks for any ability of investment. Most people have no chance to invest.

— MONTANA (@CJMMONTANA) February 17, 2018

2018 has been a heavy year for crypto users – after crossing $19,000 last year, Bitcoin crashed to around $7,000 in the first week of February while Ethereum dropped by 15% to $748. However, the crpytocurrencies made a comeback a few days ago as Bitcoin surpassed $10,000 and Ethereum went higher than $950. Such a change in price was met with delight by the crypto community.

But when Buterin posted the reminder, followers started questioning his motives behind the tweet. Last year, Buterin warned users that, “If all that we accomplish is lambo memes and immature puns about ‘sharting,’ then I WILL leave.” He further mentioned that people need to understand the difference between getting rich instantly and ‘achieving something meaningful for society’.

*All* crypto communities, ethereum included, should heed these words of warning. Need to differentiate between getting hundreds of billions of dollars of digital paper wealth sloshing around and actually achieving something meaningful for society. https://t.co/aNpEnBNGsA

— Vitalik Buterin (@VitalikButerin) December 27, 2017

Buterin didn’t answer any more questions or post any other tweets. So, far his comments had no effect on Ethereum’s price which, at the time of writing, is at $963.