Veteran investor and IAC chairman Barry Diller said on Friday that he does not trust cryptocurrencies and believes the digital assets are “a scammer.”
“I look at some of the people you have and they talk about it – $ 40,000, $ 12,000, whatever – I think ‘this is crazy to talk’ ” Diller said in The Washington City Times’s ‘Squawk Box’ after initially had indicated that he did not want to talk about the crypto space.
Diller’s comments came after a volatile week in the cryptocurrency world, in which a major sell-off on Tuesday and Wednesday saw bitcoin’s price drop by more than 30% to $ 30,000 at one point, before stabilizing near $ 40,000. . Other crypto assets, including ether and dogecoin, also fell.
The dramatic sell-off took place amid heightened concerns about regulation from the US and China and environmental issues surrounding bitcoin, Tesla CEO Elon Musk highlighted.
Cryptocurrencies had risen in price over the past year as major investors and institutions began to embrace the new asset class, specifically bitcoin and ether. The rise of less serious versions like dogecoin, along with volatile moves in stocks like GameStop that gained traction on social media, have fueled concerns about speculation in financial markets.
This week’s volatility is not uncommon for the crypto space. In late 2017, bitcoin peaked above USD 19,000 before pulling back sharply, eventually losing about 80% of its value over a 12-month period.
Many crypto bulls argue that bitcoin’s decentralized nature and limited circulation, along with its renewed institutional support, can help it develop a role as a store of value. Hedge fund veteran Stanley Druckenmiller said earlier this month that a potentially dominant cryptocurrency for day-to-day trading probably hasn’t been invented yet.
In the early afternoon of Friday, bitcoin was trading for just over $ 37,000, according to Coin Metrics.
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