Bitcoin CRASH imminent? Investor warns bitcoin bubble is ‘bloodiest DANGER of the century’: Bitcoin prices are riding an all-time high but the hyper-inflated exchanges are the tell-tale signs of a major crash about to happen, said the CEO of Patriarch Equity investment group.
Eric Schiffer, who has taken upon himself to warn potential investors against jumping the bitcoin bandwagon, is certain the token’s days are numbered.
He told Express.co.uk: “I don’t want people to walk through what is going to be the bloodiest financial danger of the 21st century.”
Bitcoin prices have witnessed a meteoric rise over the past months, skyrocketing from less than £750 ($1,000) per token in January to £13,211 ($17,599.16) as of 6.03pm GMT on Wednesday, December 15, according to CoinDesk.
The cryptocurrency’s prices saw another boost at the start of the week when the token entered the Chicago Board Options Exchange (CBOE) regulated future’s market. And this has only served to fuel the imminent investor “slaughter”, Mr Schiffer argued.
The financial expert has now called on potential buyers to avoid bitcoin like wildfire for the risk of endangering their families and savings.
He said: “I think bitcoin is a ‘tower of death’. It is going to result in the imminent death of your investment – a thermonuclear death.
“Right now we are looking at a financial bubble that is bigger than the tulip craze and I believe that we are headed for a bitcoin crash that will supersede any financial worries of the 21st century.
“People are going to be shocked when they try to liquify their bitcoins.”
The crypto token is an extremely vulnerable instrument because it has no intrinsic value, he added.
It is a “Vegas-style gamble” and “money monster” which people have failed to recognise. But the investor did not think that bitcoin’s underlying crypto technology itself is something to be worried off.
In fact, he insisted we are headed for a crypto revolution.
With increased regulation and some sort of tangible value to fall back on, digital currencies are a viable future.
However, bitcoin will not be part of this future because it lacks these crucial factors.
He said: “Bitcoin is going to go through an extinction level event. What will happen is that a new competitor will emerge to one day take over.
“When this thing crashes, it will be the pilots jumping the Hindenburg – and when it does, it will be a financial nuke going off.”
Yet far from the doom and gloom of the bubble bursting, some analysts and investors see the potential in bitcoin to become a “success story”.
Jordan Hiscott, chief trader at Ayondo Markets, agreed the appetite for bitcoin is not waning but did not see a financial crash looming on the horizon.
He told Express.co.uk that in order for bitcoin to break the mould, it needs to find its place in the mainstream of finances.
He said: “The demand for the asset remains highly elevated and the fact that you can now trade it on an exchange means it’s open to a wider audience.
“I’m pretty sure Bitcoin will be $20,000 by the end of the year, but for it to be truly successful, it will need to decide whether it’s a genuine means of exchange or just a digital store of value.”
But Mr Schiffer insisted this is still nothing more than a speculative price tag perpetuated by the crypto community itself. The investor urged people not to further fuel the bitcoin bubble and tempt fate by buying into it.
He said: “If you’re interested in investing your hard-earned money into bitcoin, you just need to ask yourself if you’re willing to see your savings vaporise?
“For good investment options find trusted companies that would do that for you or look for a commodity with actual underlying value.
“But if you’re going to just burn away your money then at least do it with your own lighter and a glass of wine in hand.”
SOURCE: EXPRESS.CO.UK