Yes, you are right because people should always invest that they can afford to lose. The cryptocurrency market is unpredictable, anything can happen in the market more especially if you are dealing with the smaller coins. In very business with the chance of exponential growth there must be a high risk involved. people should be careful that's all!
But that won't be the reason for getting afraid of bitcoins.
Bitcoin is a cryptocurrency and anything can happen with it but the dips and pumps can be studied first with some good research about the coins you are investing in. But if you have low knowledge and yet you are investing into bitcoins than surely you are going to have a major loss.
Bitcoins does not harm to any kind of society and I don't think it can be assumed as harmful coin. So according to me, we should stay safe and not get afraid of bitcoins.