Governor of the Bank of England: Cryptocurrency investors could lose all their money

In mid-April, Ryan Negeri, one of the most well-known investors in digital currencies, celebrated the jump made by the cryptocurrency Dogecoin, after making his decision a month before this rise to buy it.

Negeri describes his experience as “entertaining,” telling Al Hurra that he started trading Dogecoin when its price was $ 0.05 and is still investing in it.

Dogecoin’s value fell from around $ 0.05 in mid-March to $ 0.40 in mid-April.

Negeri was keen for the tweet celebrating the rise of Dogecoin to include two names in favor of this currency, namely billionaire tech mogul Elon Musk, who expects Dogecoin to lead digital currencies in the future. , and American businessman and billionaire Mark Cuban, owner of the Mavericks basketball team, whose team now uses the currency in their relationships.

Bilal Rahal, director of the Rahal Financial Brokerage Group, told Al-Hurra that since the start of this year all digital currencies have experienced a sharp rise, and among the most famous of these currencies was Dogecoin, which has risen by nearly 900%, in less than a month.

Rahal attributed “the main reasons for the rise of the Dog Queen to support Elon Musk and other celebrities” through tweets.

But he sees this as a “problem,” noting “the rush of inexperienced people in the cryptocurrency world to buy currency on the basis of tweets.”

Rahal stresses the need to focus on what he described as the “most important factor” namely the digital currency project and its benefits, saying: “Many digital currencies are better and more important than Dogecoin for investment and use. “

He feared Dog Quinn would turn into a bubble.

In the same context, Yasser Tabaa, a cryptocurrency expert, shares Rahal’s concerns, telling Al-Hurra that the reason for the turmoil caused by Dogecoin is Elon Musk’s propaganda, as one of the most famous and richest people in the world. .

He added: “A lot of people follow Musk’s tweets without knowing what they’re buying,” which he describes as dangerous in the business world.

However, Negeri considers the outcry over the currency to be “positive”, saying: “No one thought a dog would go over a penny, then 10 cents, then 50 now, and maybe its value would rise to a dollar in a few minutes. weeks. No one expected it, not even the founder who sold most of his money to buy a car years ago. “

Tabbaa comments on this, saying: “For Dogecoin to reach a dollar, it means that its market value will be very large, equivalent to tens or hundreds of companies in the world, and that does not make sense.”

Investors in this currency are awaiting an announcement from Mask that will come as part of its participation in the Saturday Night Live program on Saturday night.

Although Al-Tabaa doubts Dogecoin will reach a dollar, he says the cryptocurrency market, which goes by the name of the bull market, is going through strange changes that no one predicted.

It is likely that this currency will experience a sharp decline in the coming period, saying, “I generally do not recommend it, but it has risen and things have gotten illogical.”

Conversely, Negeri believes everyone should buy a Dog Queen “just to experience and be a part of something bigger than them”.

Tik Tok Challenge

Al-Tabbaa says Dogecoin started trading in 2013 as a miniature version of Bitcoin, and its name and logo (a photo of a dog) was just a joke.

Dogecoin has gone on for many years without registering a raise or witnessing a turnout. “It was similar to the pennies or cheap stock currency that some people prefer, and indeed its value was less than a cent for several years,” he says.

He also attributed the recent rise in the currency to the challenge by users of the Tik Tok application for video recordings, to increase the value of Dogecoin until it reaches one dollar, so that its value increased in a few days to around 600 or 700%.

Negeri describes naming Dogecoin as “people’s currency” as being very smart, highlighting the dependence of the Mavericks and Oakland Athletics on this currency, which will add “great value and benefits” to it.

Although the support of some public figures helps digital currencies, Negeri believes, but he is not sure if the celebrities want to build their brand behind it.

In this context, al-Tabbaa said: “If celebrities try to raise certain prices on the stock market and it is later found out that they have stakes in them, they usually end up in jail.”

But when it comes to the cryptocurrency industry, the picture is unclear, despite the ongoing manipulation, al-Tabbaa says.

It is best that celebrities do not advertise currencies, “because some people risk losing their real money, and in the end investors and the market in general will be affected.”

Advice before investing

Al Tabbaa provided several tips when buying digital currencies, saying:

2) Invest in an amount that you can afford to lose as this is a high risk area so don’t borrow money to invest in it, don’t buy currencies with a credit card , do not buy currencies with most of the money you own.

２) Remember that all markets experience declines, and among these markets is the cryptocurrency market, which in 2017 and 2018 experienced a large bubble, in which currencies lost 90% of their value. , and many cannot afford this loss.

３) You need to know what to buy, why and what sets this coin apart, what its value and function is, and whether companies use it or just prominent people like Elon Musk have called to buy it.

４) The investor should forget about the currency for a while, not constantly follow its rise and fall and learn how to deal with digital currencies.

Tabaa advised to follow the investments of large funds, such as the grayscale Bitcoin fund, claiming that this fund has deposits of more than $ 30 billion in digital currencies, most of which are Bitcoin currencies that have recorded a record just under $ 65,000 last month. , then the Ethereum digital currency which hit the month, breaking a record high of $ 2,683.65.