As the value of Bitcoin and some other cryptocurrencies alike peaks up again, it inevitably opens up an avenue to invest and reap great dividends to the investors, with the young/youths not left behind in the trend. However, the tendency to acquire a high yield from investment still behooves a noteworthy feature of risk for a loss, and mismanagement by teeming young population.
The risks prospect the concern of the Mother of a young investor Ray Russell, whose mum, Mia Rusell despite Ph.D. in the financial field still lacks insight on investing in crypto, while her son, Russell has reaped tons of benefits from virtual currencies, as reported by CNN.
The Growing Concern For Parents and Opportunity for the Risk Taker That Seek Knowledge On It
Ray Russell a 17 years old high school pupil. He heard of bitcoin from a friend and its prospects, and subsequently dabble into it with $6,000 worth of bitcoin of it in December at the value of $15,000 then.
He has a value of $70,000 worth of Bitcoin five months after, with subsequent investment and trades in crypto. Such an increase in value seems astonishing to his mother who had previously confessed her pessimism to Ray about Bitcoin, as a financial professional she states that “I wanted to say, ‘What in the world?! This is crazy! But I know that won’t be productive.”
Having told him its an intangible asset with a lot of risks and didn’t know how it’ll work, her son has found a perfect formula for it to work, so to say.
After more than 20 years experience in the financial field and lecturing personal finance courses at University level, she still finds it astonishing at how money enters Coinbase, a crypto exchange and what’s coming into her son’s account.
When her opinion was sought on blockchain technology as a financial professional, she says that her real-world training and experience cannot provide him with the answer.
“I chuckle because I am relatively knowledgeable in this space and I’m challenged,” she says. “My son will joke. ‘You don’t even know about this, and you have a Ph.D.!'” She told CNN.
Seeking The Knowledge To Your Advantage
While many adults still doubt the potential of Bitcoin and cryptocurrency. Teenagers and youths that sought to explore knowledge have turned many benefits to their advantages. Just like Mia Rusell who questions, Ray Rusell, her 17 years old boy who got to learn valuable insight from friends, websites, YouTube videos and a massive online open course on crypto, while many are still doubting. He has made profitable gains from the knowledge obtained.
The Risk and Fears
No venture has advantages without its disadvantages; the same lies with cryptocurrencies. It’s only advisable to tread carefully and choose the path to follow as an investor.
According to Owen Donkey, the chief counsel, office of investor education and advocacy at the Securities and Exchange Commission. He states that
“When you talk to investors who have been in the market a long time, they understand that along with the potential for high reward almost always comes the possibility of high risk,” and further said “My concern is that young people may not have gotten that message. They certainly haven’t lived that message. And it is hard especially when it is competing against a loud get-rich-quick media environment.”
The opinion of Mia Russell as a professional financial stand on the money made getting tied to proper investment. “But when money so easily comes into his hands, what’s the consequence of that later on? I want him to value earning it and saving in some way.” She states. Purchasing a home, marriage, and investment in life milestones are the concerns of Mia.
Regardless, there are many benefits to those who are ready to learn, treading carefully to avoid the pitfalls is an added advantage to any crypto enthusiasts, both the old and the young.