Bitcoin has had a good run over the years since its creation in 2009. For some it has been completely frightening while other have enjoyed the ride, even making millions while at it. However, one American business man and investor who predicted the housing market crash of 2008, is warning investors of the looming Bitcoin bubble that is about to burst.
This comes just a week after the launch of Bitcoin futures CBOE contracts that saw the price of Bitcoin recover slightly. However the price dropped for the second time in January with the introduction of CME Bitcoin futures trading contacts.
Then, Coinbase came along with an unexpected surprise with the launch of Bitcoin cash on its GDAX cryptocurrency trading platform. As expected, the price of BCH went through the roof while Bitcoin somewhat lagged behind.
On the other hand Peter Schiff gave a warning to investors, asking them to avoid buying Bitcoin at its current price – or risk losing their investments.
Granted, Bitcoin has had a rough couple of weeks since the beginning of the year, as it has moved back and forth around the $16000 mark, but after a bull run that saw its price sky rocket by over 200 percent, Schiff still says that it’s too late to ride the bubble. He was quoted on cointelegraph saying,
People who got it years ago, even people who got it at the beginning of the year 2017 have the opportunity to cash out and make a lot of money. But, people who are buying it at these prices or higher are going to lose practically everything,
Buy In With the Rumors, Sell With the News
Among cryptocurrency enthusiasts, it is well known that one has to buy during the rumors and sell on the news. Could this be the one summary of Schiff’s sentiments, and a warning to crypto investors trying to multiply their investments now? Well, we don’t know the answer but he further added,
These currencies are going to trade to zero or pretty close to it when the bubble pops. Right now, the only reason why people are buying Bitcoin is because the price is going up. When it turns around, they are not going to sell it for the same reason
To back his claims of a looming Bitcoin crash, he cited Bitcoin’s congested network that has recently led to noticeable delays in transactions. He said that although there is value in Bitcoin, it cannot be used as money since it’s expensive and slow, therefore vulnerable.
