Drew Austin, an entrepreneur and investor, invested heavily in cryptocurrencies and NFTs, including digital horses, digital sports cards, and some digital art. They took a “substantial liquidity hit” when cryptocurrency prices crashed in May, he said. But he is not cashing out, as he believes these new assets are the future. Still, volatility can be stressful. Unlike the stock exchange, these new markets never close.
“There are nights when I go to bed and I think, Please, God, China, don’t mess this up,” he said, using strong language. “It’s 24/7. It never stops.”
Bitcoin’s volatile month – a fall of nearly 65% in May, some recovering and then falling further this week – hasn’t dampened investor enthusiasm. recently Survey The Ascent, a financial services rating site, showed that Generation Z investors consider cryptocurrencies to be slightly less risky than individual stocks.
But they are learning that a single tweet can cause huge price fluctuations. In February and March, when Elon Musk and his company Tesla adopted bitcoin, its price soared. In May, its price plummeted when Musk tweeted that Tesla would not accept bitcoin payments due to concerns about its environmental impact.
It jumped again this week when Mr Musk suggested on Twitter that Tesla would someday accept bitcoin again. (His tweets have also inspired Dogecoin, a joke cryptocurrency based on a meme about a Shiba Inu.)
The constant appetite for risky bets has fueled companies like Robinhood, which enable customers to trade stocks, options and cryptocurrencies. In January, Robinhood’s role in trading meme stocks landed it in hot water with Congress, state regulators, and its customers.
The attention only turbocharged Robinhood’s growth: Revenue more than tripled in the first three months of 2021 compared to the same period last year. Robinhood plans to go public in the coming months.