Crypto currencies are getting hammered once again in markets this week. CNBC reports:
Prices of major cryptocurrencies saw a sharp downward slide Thursday, amid closer regulatory scrutiny on the space and after Google announced plans to ban advertising related to the sector.
The market capitalization or value of all the world’s digital coins stood at $310.4 billion early on Thursday morning, down from $372.9 billion a day before, according to Coinmarketcap.com, which tracks prices based on different exchanges.
Bitcoin, the world’s largest cryptocurrency by market cap, traded as low as $7,676.52 on Thursday, the lowest since February 8, according to CoinDesk data.
Bitcoin’s price has come back a bit since then, but investors shouldn’t be asking themselves, “what value do I believe my bitcoin has?” There’s no obvious way to value bitcoin, so there’s no point in even trying to pin a number on it.
Instead investors should be asking themselves what level of volatility they are willing to endure to speculate in crypto currencies. The neck-snapping ups and downs of bitcoin and other cryptos should alone be enough to drive any real investor away.
Remember that just as important as your profit potential, or perhaps more so, is the risk you must take to achieve it.
