Bitcoin’s roller-coaster ride shows why people should be cautious before investing in cryptocurrency

SourceCNBC
SectorFinancial Markets
CountryMiddle east

Bitcoin has been on a wild streak lately, showcasing why curious investors should pause before putting money into the cryptocurrency.The asset hit a record high of $41,973 on Friday, according to data from Coin Metrics, but on Monday plummeted about 15%, wiping as much as $200 billion of value from the cryptocurrency market in just 24 hours.The extreme movements up and down are relatively common for bitcoin and are expected to continue."The only thing I can expect for sure is volatility," said David Yermack, a professor of finance at New York University Stern School of Business. "From day one, this has been a risky investment for people."More from Invest in You:Mother's budget game plan: freeze non-essential spending for JanuaryHere's how to make that financial New Year's resolution a realityCan't afford an estate plan? What you can do without spending a fortuneBitcoin has seen both astronomical growth over the last decade and major selloffs at various points in between. Although many bulls point to its past performance as a sign that the cryptocurrency will continue to surge in the future, that might not happen, according to Yermack."It's a purely ...read more...