Drew Austin, an entrepreneur and investor, has invested heavily in cryptocurrencies and NFTs, including digital horses, digital sports cards, and some digital art. He received a “significant liquidity hit” when crypto prices fell in May, he said. But he doesn’t cash out, because he believes these new assets are the future. However, volatility can be stressful. Unlike a stock exchange, these newer markets never close.
“There are nights when I go to bed and I think, ‘God, China, stop messing this up,’ he said in stronger language. “It’s 24/7. It never stops”.
Bitcoin’s volatile month — down around 65% in May, recovering some and then falling further this week — hasn’t shaken investors’ enthusiasm. A recent survey by The Ascent, a financial services rating website, found that Generation Z investors view cryptocurrencies as slightly less risky than individual stocks.
But they are learning that wild price action can happen in just one tweet. In February and March, when Elon Musk and his company, Tesla, accepted Bitcoin, its price skyrocketed. In May, when Mr. Musk tweeted that Tesla would not accept payments in Bitcoin because of concerns about its environmental impact, its price dropped.
It spiked again this week when Musk suggested on Twitter that Tesla would one day accept Bitcoin again. (His tweets also promoted Dogecoin, a joke cryptocurrency based on a Shiba Inu meme.)
The constant appetite for risky bets has prompted companies, like Robinhood, to allow clients 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.
Attention only accelerated Robinhood’s growth: Revenue more than tripled in the first three months of 2021 compared with the same period last year. Robinhood plans to go public in the coming months.