The price of one bitcoin is now hovering around $6,400. That’s a more than 50% drop in 2018 and a 66% plunge from the all-time high of just under $20,000 that bitcoin hit in late December.
Other cryptocurrencies, such as Ethereum, XRP (aka Ripple) and Litecoin, have suffered similar gut-wrenching drops in the past few months. Legendary investors Warren Buffett and Charlie Munger of Berkshire Hathaway (BRKB) have warned investors to stay away from cryptocurrencies as a result.
Buffett told CNBC in early May bitcoin was “probably rat poison squared” while Munger said at at the Berkshire shareholder meeting that the thought of owning cryptocurrencies was “just dementia.” Bitcoin may eventually bounce back.
Blockchain technology could still transform how people pay for things in the future. But the scores of other cryptocurrencies that have cropped up in bitcoin’s wake may not thrive — or even survive.
“The market did go up a little too much last year and people felt it was easy to make money. Investors weren’t separating the good from the bad,” said Ben Marks, CEO and founder of Blocktrade Capital, a firm that trades cryptocurrencies. Read more from money.cnn.com…
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