Sygnia CEO warns of the dangers of over-investing in Bitcoin

One of South Africa's richest women, Magda Wierzycka, CEO of South African investment firm Sygnia, said that Bitcoin, as the leading cryptocurrency, is often perceived by investors as a universal gold standard, but its dominance in investment portfolios can be dangerous.

The current Bitcoin price doesn't reflect the true and fundamental value of the world's leading cryptocurrency, according to Magda Wierzycka, given the asset's speculative nature alone. According to the head of Sygnia, investors, especially those whose Bitcoin holdings exceed 50% of their portfolio, should reconsider their strategy.

The businesswoman called Bitcoin overvalued and recommended diversifying crypto investments similar to how stocks are distributed in traditional portfolios, as excessive concentration in one asset increases investors' vulnerability to the inevitable volatility of the crypto market.

“Bitcoin remains a highly volatile asset, despite its volatility declining from 200% to 40% over the past ten years. This creates the risk of significant losses, especially for retail investors who may not be able to withstand sharp price fluctuations,” said Sygnia's CEO.

According to Vjeżycka, cryptocurrencies should make up no more than 5% of a portfolio in a diversified investment strategy.

Earlier, American writer, television and radio host Dave Ramsey criticized crypto investors, comparing their investments to a fetish and throwing money away on gambling.

Source: cryptonews.net