For many of us watching the news on Bitcoin and cryptocurrencies recently it seems like the sky is the limit.
There are a handful of currencies which are going from strength to strength and are making a lot of people a whole lot of money.
But for those who are looking to invest in Bitcoin, it might not be the best idea, according to a crypto expert.
An anonymous expert, who has made a fortune in the coin and is now donating a huge chunk of their wealth to worthy charities, has resolutely warned against putting money in Bitcoin for a long-term investment.
They told UNILAD:
I can’t directly answer [which coin to invest in], but I want to caution against investing without understanding the risks. Bitcoin has crashed by almost 90% before, and it is bound to crash again.
Cryptocurrency is not a piñata of free growth. I believe we are in a bubble, and many people who have invested recently (or invest from now on, at these prices) will be facing substantial losses.
The expert, who has set up the Pineapple Fund with their fortune, thinks that anyone who plans to invest money in Bitcoin for a long-term holding stands to lose a lot of money.
They told us:
Every single time we’ve seen a meteoric rise in the valuation of cryptocurrency, there has been a corresponding bloodshed.
This time may be different, or it may not be.
So far, the anonymous investor has donated millions to various causes, including The Water Project, internet privacy activists and technological charities focusing on universal healthcare.
The poster also called for any other suggestions at who would be worthy of a donation.
The donor told UNILAD they wish to remain anonymous, as even their friends and family do not know they have as much Bitcoin wealth as they do.
They are immensely proud of Bitcoin, and how far it has come, telling us:
I discovered bitcoin among the early years, back when the community was a group of like minded people wanting to build the first decentralized currency, powered by code and not human trust.
I undertook a variety of activities, from mining, trading, and even worked for bitcoins. I’m proud of how much bitcoin has came from its humble origins of a whitepaper and a SourceForge repository.
The Pineapple Fund (5,057 BTC) is a majority of my cryptocurrency holdings, but I still have a substantial portion that I am keeping.
I am donating this much because I have enough already; my quality of life will not be impacted in the slightest. Maybe it’ll also buy me karma.
So the moral of the story? Get investing, but not in Bitcoin.