Bitcoin crisis: The cryptocurrency is on the verge of collapse, with investors warning that it will be “brutal.”
BITCOIN may be heading for a greater crisis after an expert warned earlier this year that “it will be brutal.”
Bitcoin lost another 6.1 percent of its value Wednesday night, falling from $37,349 (£26,000) to $35,063 (£24,000). Dogecoin and Ethereum both experienced price drops, with the former dropping 7.8% after the memecoin’s price went from $0.303 at 9.30 p.m. to $0.300 at 5.50 a.m.
It comes amid a moment of volatility for cryptocurrencies, which was spurred by Tesla’s decision last month to cease accepting Bitcoin as payment.
Elon Musk, the firm’s CEO, had previously stated that the company will take cryptocurrency.
This has raised questions about how widespread Bitcoin adoption will be.
In January, investor and US Shark Tank judge Kevin O’Leary questioned Bitcoin’s viability.
“Bitcoin is a nothing-burger,” he remarked. A massive nothing-burger…. Not every institution is on board with the idea.
“When it happens, grown men will weep. Never in your life will you witness such a loss of capital. It’s going to be awful. And all I’m suggesting is that you should prepare for it.”
Despite his skepticism, he believes a worldwide digital currency would have “tremendous utility.”
“If there was an attempt, [with]Bitcoin itself or another money, that could be exchanged anywhere with a regulator approving to it…,” Mr O’Leary remarked. Then you’d have something truly valuable.
“I could retain half of my net wealth in digital money and just flow that way.” With it, I could purchase groceries and a house.
“That is a much more appealing image than this small little thing that is an anomaly for certain individuals and in many respects isn’t liquid or easily liquid.”
Other analysts, on the other hand, are more upbeat.
In March, David Sacco, a cryptocurrency expert at the University of New Haven, predicted that Bitcoin will hit $1 million in value.
“There is the scarcity associated with it, and I believe we are just at the tip of the iceberg in terms of people’s acceptance of it,” he said.
“In a globalized economy, people have less faith in global institutions, which makes Bitcoin an alluring proposition.
“I wouldn’t rule out Bitcoin reaching a million dollars in my lifetime, let alone in the next five to 10 years.”
The Financial Conduct Authority (FCA) in the United Kingdom has issued a warning. “Brinkwire News in Condensed Form.”