The blockchain entrepreneur Dan Novaes has predicted that day trader who are tempted by the bitcoin’s plunge could ‘get slaughtered’ if they invest all their assets into the cryptocurrency. Bitcoin has dropped nearly 50% since December 2017 when it attained a high mark all-time high above the $19,000 cap.
According to Novaes, the first-time investors who have the get-rich-quick aspirations should take precautions and should not invest more than 2% of their assets into the bitcoin currency due to the unpredictable cryptocurrency market. Novaes’ company provides an all-inclusive platform for common streaming services including the Spotify and SoundCloud and also offers its users a chance to earn the cryptocurrency to cover up for the subscription costs.
Furthermore, the blockchain company uses the online ledger technology that supports the services offered by the bitcoin and other digital currencies and hence they can easily predict the probable dynamics of the industry for 10 years and beyond. Novaes stated that the crypto crazes are similar to the internet boom that was there about 20 years ago, which was quite unpredictable.
Based on the Novaes analysis, it would be hard for the cryptocurrencies to survive the turmoils and the investors should, therefore, spread out their portfolio among the top 20 crypto companies in order to make a lot of return on their investment. Though the digital currencies have lost in their previous quarters, Bitcoin, Ethereum, and Ripple have maintained a slightly high mark in the past 12 months, with bitcoin growing 1,000%, ethereum 8,500%, and ripple 13,000%, making them relatively high entry points for first-time investors.
However, Novaes stated that it’s not too late to invest in the cryptocurrencies since the early adopters like him are still buying the new coins. According to Nolan Bauerle, the director of the research at the CoinDesk, the digital currencies prices depends solely on what the individual is willing to pay and sell. Bitcoin has a market value of $171 billion while ethereum has $84 billion hence making them top two digital currencies.
