Vitalik Buterin, the young programmer responsible for the creation of the promising Ethereum protocol, the technological underpinning of the virtual currency Ethereum, the second largest cryptocurrency after Bitcoin, warned about the high volatility of all crypto-assets and told savers to turn to traditional assets.
He is neither a banker, nor a regulator, nor an economist, or any other personality from the outset suspicious of archaism or defense of the established system, but one of the most respected figures in the cryptocurrency community, and he calls for the utmost caution when it comes to investing in virtual currencies. Vitalik Buterin, 24, is the inventor of the Ethereum, which has a capitalization of 92 billion dollars.
The young Canadian programmer of Russian origin, who says he lives in Switzerland, sent a call for wisdom this weekend on his Twitter account:
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) 17 February 2018
This warning is reminiscent of the three European financial gendarmes (Banking, Market and Insurance Authorities) who insisted that you should not “invest money that you can not afford to lose.”
So, the thing to keep in mind from this is that the 24-year-old Russian-Canadian programmer advised us:
If you’re trying to figure out where to store your life savings, traditional assets are still your safest bet.
Vitalik Buterin himself is a crypto-millionaire, multimillionaire in virtual currency. His fortune is estimated at between $400 million and $500 million by Forbes magazine. The ether price has gone from less than $13 a year ago to over $900 today. Far from the sometimes unadorned tirades of some defenders of crypto-currencies, the one who claims to have “crypto” for religion is lucid or even disillusioned:
I am skeptical that people involved in cryptocurrency are better people than people involved in the banking system, he said.
Ethereum is tested by many large companies, including banks, such as JP Morgan, ING Groep N.V., Credit Suisse, Santander, UBS. But also Microsoft, Intel, and BP, members of Enterprise Ethereum Alliance, that use it for automatic execution of smart contracts. One of the functions promised for a great future of blockchain technology.
The Enterprise Ethereum Alliance connects 500 enterprises, startups, academics, and technology vendors with Ethereum subject matter experts.
The reaction of Vitalik Buterin is representative for a part of the crypto-community that is uncomfortable to see the involvement of pure speculators who do not share at all the philosophy of these geeks of that were here first, being motivated by other things, not profit.
Last December, Charlie Lee, the creator of Litecoin, an alternative to Bitcoin, announced that he had sold all of his holdings in Litecoin, after being outraged by accusations of manipulation and conflict of interest.