Erik Finman, who gained renown after becoming one of the earliest crypto millionaires, told MarketWatch in an interview that the virtual currency that made him wealthy is headed to the trash bin.
“Bitcoin is dead, it’s too fragmented, there’s tons of infighting. I just don’t think it will last.
“It may have a bull market or two left in it,” he added, “but long-term, it’s dead.”
Finman was especially downbeat about Litecoin — which has fallen 95 percent from its peak — as being on the way out.
“Litecoin has been dead for a while,” he said. “It’s like when the sun is going down and there’s that eight-minute period just before it goes dark. Litecoin is in its seventh minute.”
In the last 24 hours, bitcoin hit a new yearly low of $3,126, and some analysts believe it may fall even further — below the $3,000 level.
It’s been nearly a year since bitcoin surpassed $18,000 and appeared headed toward $20,000 — before falling back to earth.
As I understand these things, a currency’s value is based on trust of the issuer. Continental dollars didn’t amount to much (though I believe our new government did end up making good on most of them), Confederate dollars were worse, and Bitcoin was an implausible scheme from its inception. I’d say I was surprised by Wall Street’s jubilant acceptance of Bitcoin as something good to invest in, but nothing our geniuses do down in the canyons surprises me.
I’m more concerned about what happens when the hollow foundation of our own currency is exposed, but I suppose that will only happen when the entire global economy collapses, so who’ll notice?