Investing in cryptocurrency is about as relaxing
as taking a swim through shark-infested waters.
So the latest news from the world of digital dosh is bound to cause even more stress for traders.
The price of three top cryptocurrencies has plummeted in recent days, prompting fears that the bubble is about to burst and a crash is on the way.
Bitcoin has slumped from a high of about $17,000 to just under $15,000, while Ripple dropped from $3.77 to $2.39 and LiteCoin from $298 to $251.
There is some good news for Ethereum investors. It has just reached a historic high of roughly $1,500.
However, investors could still be facing a grim journey into a world of pain.
Charles Hoskinson, founder of Ethereum, thinks the bubble is about to burst.
‘My personal opinion is that we’re going to see a consolidation after a crash,’ he told CNBC.
He said the problem would be made worse by all the bonkers cryptocurrency projects, which have included a ‘Bitcoin for porn‘ and DogeCoin – a parody currency now worth more than $1billion.
‘What’s going to occur is a lot of these ventures that don’t have strong fundamentals, don’t have good tech, or just unrealistic projects, they will eventually run into some major wall they can’t quite overcome. They will fracture up and you will see a lot of them are certain to fail,’ he added.
MORE: Which cryptocurrency should you invest in? Litecoin, Ethereum, Ripple and other alt-coins compared
By Jasper Hamill
