What are the risks associated with investing in cryptocurrencies according to Morningstar's?

1 answers

• Dec 16, 2021 · 3 years ago
  According to Morningstar's analysis, one of the risks associated with investing in cryptocurrencies is the lack of intrinsic value. Unlike traditional assets like stocks or bonds, cryptocurrencies do not generate cash flows or have underlying assets that provide value. Instead, their value is largely based on speculation and market demand. This makes cryptocurrencies more susceptible to market sentiment and hype, which can lead to price bubbles and rapid price declines. Investors should be cautious and understand that the value of cryptocurrencies can be highly speculative and may not necessarily reflect their true worth.
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