Co-founder of eToro: Bitcoin is not necessarily a safe haven, the risk of altcoin is higher

According to CoinMarketCap data, Bitcoin accounts for nearly three-quarters of the entire encryption market, with a market capitalization of more than $21.1 billion, 10 times that of the second largest digital asset, ETH. Bitcoin prices have risen during the turbulent week of traditional financial markets: Bitcoin rose 14% in the seven days to Friday, while the price of the altcoin, including ETH and XRP, fell. Yoni Assia, co-founder and CEO of online trading platform eToro, said in an interview: "Although Bitcoin is a high-risk asset class, I think the risk of altcoin is higher. In the winter of encryption, many people suffer or There have been bad experiences.” He refers to the period of sudden sell-off of digital assets before the end of 2018. He added that investors holding altcoins sometimes see their value fall by 90%. Affected by macro factors, investors seek safer asset refuge, including sovereign bonds and gold. But analysts and investors agree that Bitcoin has also benefited from turmoil, given the sudden increase in geopolitical tensions and the departure of Bitcoin from government control. But many people have warned that using Bitcoin as a safe haven is risky. As we all know, cryptocurrencies are highly volatile and sometimes cause huge losses in a matter of minutes. Assia said, “It is a bit paradox to say that Bitcoin is a safe haven because it is a very high-risk asset class. This is an alternative way of storing value, not necessarily a safe haven.”