The bubble may have burst for bitcoin and other cryptocurrencies. Other cryptocurrencies, such as Ethereum, XRP aka Ripple and Litecoin, have suffered similar gut-wrenching drops in the past few months.
Buffett told CNBC in early May bitcoin was “probably rat poison squared” while Munger said at at the Berkshire shareholder meeting that the thought of owning cryptocurrencies was “just dementia. Blockchain technology could still transform how people pay for things in the future.
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Is your bitcoin investment safe from crypto hacks? But the scores of other cryptocurrencies that have cropped up in bitcoin’s wake may not thrive — or even survive. Investors weren’t separating the good from the bad,” said Ben Marks, CEO and founder of Blocktrade Capital, a firm that trades cryptocurrencies.
Tons of publicly traded companies tried to latch onto the crypto craze. The stock surged — until the company disclosed the Securities and Exchange Commission was probing it.
It’s since been delisted by the Nasdaq and now trades as a so-called bulletin board stock at a price below 50 cents a share. Some companies began selling digital tokens to raise money.
There’s even a PotCoin for the legal marijuana and cannabis industry. Some of these so-called initial coin offerings are legitimate. But there have been plenty of scams too.
Bitcoin prices have been manipulated, study says The sheer number of crypto offerings is very similar to how Pets. We didn’t need hundreds of internet retailers. Even Amazon’s shares were hit hard in the immediate wake of the tech bust because of concerns about its lack of profit and insane valuation. But Amazon AMZN eventually started to make money as it expanded into more areas and got people to begin paying subscriptions for Prime memberships.
That’s been great for consumers — and the shareholders of large brick and mortar retailers. But it shows that having an e-commerce strategy isn’t special. Its a vital part of any retailer’s strategy.
The same may ultimately be said for bitcoin and the blockchain.