Sebastian Siemiatkowski – the CEO and co-founder of Swedish fintech company Klarna – is worried that people do not have enough education before jumping into the world of bitcoin investing.
Sebastian Siemiatkowski: Education Is Key
Investing can be fun and prosperous. It can also lead into a downtrend of sorts granted one does not know what they are doing before jumping in headfirst, which is arguably what has happened a lot with bitcoin and other cryptocurrencies. Many people, for example, saw that bitcoin was rising like mad at the end of 2017 and quickly jumped in due to FOMO or fear of missing out, and as a result, they wound up losing quite a bit.
The following year, bitcoin fell to record lows and lost approximately 70 percent of its value. There are many people out there that likely jumped into BTC because they wanted to take advantage of the rising price, but they failed to educate themselves on the currency’s properties, and thus it likely never occurred to them that the currency would be as volatile as it was and still is.
Siemiatkowski is warning investors that this lack of education could make them late to the crypto party, and that they will wind up missing out on some rather valid opportunities granted they do not bother to have more knowledge about what they are doing. He states in a recent interview:
There is a lot of promise in cryptocurrencies, but at the same time, I am deeply worried that the big risk is like when my cab driver is asking me if he should invest in bitcoin. That is when I get nervous that a lot of people will come late into the party and lose a lot of money.
One of the other things Siemiatkowski is nervous about is the fact that so many individuals and companies continue to promote bitcoin and other forms of crypto without reservations on Twitter and other forms of social media. He says that many people are likely to see these ads and fall for them hook, line and sinker. He believes that regulators need to step in and make sure they are all valid and that platforms such as Twitter need to be doing more to protect people from making haphazard financial decisions and potential scams.
We Need to Protect People from Bad Monetary Decisions
He goes on to say:
As much as I am excited about the technology, I am always worried about talking about it because there is a big risk and such a volatile play at this point in time. You know, when I say what I just said, I promise you will have 500 people on Twitter chasing me for even daring to express skepticism.
Founded in 2005, Klarna is roughly 16 years of age and is currently valued at more than $30 billion.