Coinbase CEO Brian Armstrong warned about what he called the risks of investing in Bitcoin and cryptocurrencies.

According to Arabianet, Armstrong wrote in a post: While it is great to see rises in the market and for the media to see attention shifting to the emerging asset class in a new way, We cannot emphasize enough how important it is to understand that investing in cryptocurrencies is not without risk.

The most popular digital currency has increased by a staggering 30% this week alone, touching $ 24,220 on Bitstamp in Luxembourg before slipping back a bit.

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Armstrong's article was published this week before the San Francisco-based company, one of the world's most important cryptocurrency exchanges, disclosed that it had secretly submitted a request. For a long-awaited initial public offering to the US Securities and Exchange Commission (SEC).

Coinbase intends to enter the stock market as other tech companies such as AirBnB and DoorDash are starting to debut with high ratings.

and Coinbase, which makes money through fees linked to client trades, last raised funds in 2018, with a value of $ 8 billion.

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Armstrong added: Crypto can be a more often volatile asset class than the traditional financial instrument types most investors are accustomed to. This means that the market can move in either direction much faster than the stock market.

fluctuation time

The price of Bitcoin witnessed a dramatic decline from about $ 7,000 to less than $ 4,000 last March, as the Corona pandemic caused the markets to collapse, but it quickly rebounded to About $ 10,000, and began climbing towards an all-time high in October.

Bitcoin's price hike has accelerated in recent months as more and more prominent investors have come to view the digital currency as a potential hedge against inflation, and some of the largest Wall Street banks have changed Its position on the digital asset class.

Armstrong continued: Like all asset classes, cryptocurrency markets will rise and fall over time, referring to the 2017 Bitcoin bubble that saw the price of the digital currency rise from below 1,000. Dollars at the beginning of the year to about $ 20,000 to finish ...