Bitcoin crisis: Crypto headed for disaster as investor warned 'it will be brutal'

Samir SharmaJun 12, 2021Business

Bitcoin endured another tumble last night, dropping in value from $37,349 (£26,000) to $35,063 (£24,000) – a 6.1 percent drop. Dogecoin and Ethereum also endured slumps – the former saw a drop of 7.8 percent after the price of the memecoin fell from $0.303 at 9.30 pm to $0.300 at 5.50 am.

It comes amid a turbulent period for cryptocurrencies, sparked by Tesla’s decision to stop accepting Bitcoin for payment last month.

CEO Elon Musk had previously announced that the company would accept crypto.

This has caused concerns over how much mainstream use of Bitcoin there will be.

Investor and US Shark Tank judge Kevin O’Leary cast doubt over the future of Bitcoin in January.

He said: “Bitcoin is a nothing-burger. A giant nothing-burger….Not every institution is willing to play ball with it.

“Grown men are going to weep when that happens. You will never see a loss of capital like that ever in your life. It will be brutal. And, I’m just saying you have to get ready for it.”

Despite his scepticism, he did argue there would be “tremendous value” in a global digital currency.

Mr O’Leary added: “If there was an attempt, [with] Bitcoin itself or another currency, that could be traded everywhere with a regulator agreeing to it … then you’d have something of tremendous value.

“That way, I could keep half of my net worth in the digital currency and just flow. I could buy groceries, buy a house with it.

READ MORE: Bitcoin boost as expert warns ‘lower the drop, the higher the bounce’

“I wouldn’t bet against Bitcoin hitting a million dollars in my lifetime, even in the next five to ten years.”

Britain’s Financial Conduct Authority (FCA) warned investors of the risks that come with Bitcoin following the recent slump.

They said: “If consumers invest, they should be prepared to lose all their money.

“Some investments advertising high returns from crypto assets may not be subject to regulation beyond anti-money laundering.

“Significant price volatility, combined with the difficulties valuing [Bitcoin] reliably, place consumers at a high risk of losses.”

Express.co.uk does not give financial advice. The journalists who worked on this article do not own Bitcoin.

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