Thinking of buying bitcoin? What experts say about big crypto concerns: ‘You have to be mentally prepared’ – CNBC

Thinking of buying bitcoin? What experts say about big crypto concerns: ‘You have to be mentally prepared’ – CNBC

The price of bitcoin hit a record high of over $41,000 on Friday, according to CoinDesk. It now has a market value of over $700 billion, and, as a result, pushed the value of the entire cryptocurrency market to surpass $1 trillion for the first time.

If you listen to bitcoin bulls, it’s just the beginning.

“It’s probably going to $100,000, then $150,000, then $200,000,” Chamath Palihapitiya, founder and CEO of Social Capital, told CNBC’s “Halftime Report” on Thursday. “In what period? I don’t know. [Maybe] five or 10 years, but it’s going there.”

With all the hype, many people are wondering if they should invest in bitcoin. But the cryptocurrency also creates a wide array of concerns: Some worry that bitcoin is a bubble, too risky to invest in or susceptible to fraud, to name a few.

CNBC Make It spoke to bitcoin and fintech experts about the common concerns surrounding the cryptocurrency.

Is bitcoin too risky for the average investor?

Compared to most investments, bitcoin “is a highly volatile, highly risky investment,” James Ledbetter, editor of fintech newsletter FIN and CNBC contributor, tells CNBC Make It. “If you look historically at the price of bitcoin, there have been a number of occasions where it’s really spiked and then comes crashing down really quickly.”

(For example, after rallying to nearly $20,000 in 2017, bitcoin’s price collapsed and lost a third of its value in
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