CRYPTO CRASH

Crypto millionaire Erik Finman warns Bitcoin is ‘dead’ as cryptocurrency crash continues

The 19-year-old first invested $1,000 in Bitcoin when he was 12 - and cashed it in last year to make $4million (£3,162,800)

A TEENAGE bitcoin millionaire has warned that the cryptocurrency is now "dead" and that its future is finite.

Erik Finman, 19, from New York, has been investing in the digital currency since he was 12-years-old and now he's warning others that bitcoin's end is on the horizon.

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The millionaire told investing publication MarketWatch: "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, but long-term, it's dead."

A year on from the currency's record-breaking high, Bitcoin looks like it's now set to smash another record - a new 2018 low.

Since the start of the year, the cryptocurrency has continued to crash, which is now down to $3,400 (£2,688) today.

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account is littered with photos of the entrepreneur flying solo on private jets, sitting on top of swanky cars, lying in bed on dollar bills and pretending to smoke a rolled up $100 note.

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He also warned that another popular cryptocurrency Litecoin is also on it's way out, which is down by more than 95 per cent from its peak in May last year.

 


What is Bitcoin?

BITCOIN got you baffled? Here's what you need to know:

  • Bitcoin is a virtual currency
  • It's traded between people without the help of a bank
  • Every transaction is recorded in a public ledger, or 'blockchain'
  • Bitcoin is created by mining
  • Mining involves solving difficult maths problems using computer processors
  • Bitcoin can be traded anonymously, which makes it a popular way of funding illegal activities
  • A single Bitcoin is worth just under £5,000 today, but the value fluctuates wildly
  • Bitcoin is one of many different cryptocurrencies, but by far the most popular

But the teenager did praise digital currencies like Ether and ZCash - so all is not lost if you're thinking of dipping your toe into the world of online currencies.

Bitcoin is a virtual currency that was created in 2009 by an unknown computer whizz using the alias Satoshi Nakamoto.

The future of bitcoin is largely unknown because it's largely unregulated - although this could change because governments are concerned about taxation.

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In October, bitcoin prices rocketed on Bitfinex Exchange as Tether - another cryptocurrency - dropped against the dollar.

But it's rise was short lived. In November, prices fell below $4,500 for the first time in a year, and it's continued to crash even further.

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But some sellers are willing to accept it. Daniel Roy even put his £1.65million townhouse in Peckham, South London, on the market for 500 bitcoin in September 2017.

The following month a newbuild family home in Colchester, Essex, was marketed for 82.55 bitcoin, equivalent to around £25,000 less than if paying in sterling.

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One fitness fan managed to turned her £2,700 bitcoin investment into £80,000 over four years - and used the profits to quit her job and start her own health business.

Brief history of Bitcoin and its market volatility


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