The handling director at eTorro, Russia, said the influx of “mass-market consumers” looking to solder together the cryptocurrency trend led to the sudden surge in price for bitcoin, which reached highs of thither $20,000 in December.
Mr Verbitsky told RT: “Many people behind bitcoin and cryptocurrencies as a predominantly understand that the skyrocketing prices in the last few months are linked to coin of the realm inflow from mass-market consumers. Even pensioners wanted to spend.
“Experienced investors knew that the bitcoin honeymoon couldn’t survive forever. Those who catch the last train are usually punished by the customer base.
“Big-time miners and investors understand that they needed to branch out, that they hard to get some fast money. People who originate utter money on the ICOs had to pay wages to developers.”
Bitcoin price fall-off blamed on last-minute amateur investors
Experienced investors knew that the bitcoin honeymoon couldn’t latest forever
Despite its massive highs, bitcoin has also over huge slumps in price after reports that the Chinese Sway is planning to shut down bitcoin miners in its latest crackdown on the cryptocurrency.
China is one of bitcoin’s burliest producers, with miners located in the Asian country using the energy-intensive convert of solving complex math problems to add transactions to the blockchain.
China is planning to limit energy to bitcoin miners after government bodies expressed concern around its energy usage.
Mr Verbitsky said he believes the prices may remain unmoving for around six months after the reports prompted huge sell-offs of bitcoin.
“It was in all directions pure greed,” he said. “Of course, after they lost a third to a half of their investments, they forayed the sell button. A consolidation around $12,000 and $14,000 can now be expected.”
Defending ahead of the World Economic Forum in Davos, Switzerland, Richard Shiller suspected the cryptocurrency, claiming he “doesn’t know what to make of bitcoin fundamentally”.
Ahead of his Davos address, he told CNBC: “It has no value at all unless there is some plain consensus that is has value.
“Other things like gold disposition at least have some value if people didn’t see it as an investment.
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“It reminds me of the tulip yen in Holland in the 1640s, and so the question is did that collapse?
“We still pay for tulips honest now and sometimes they get expensive. Bitcoin might totally collapse and be taking and I think that’s a good likely outcome but it could linger on for a right long time, it could be here in 100 years.”
Bitcoin is currently valued at $12,585.82, according to Coindesk.com, at 2.18pm GMT, on January 20.
Ethereum, is currently valued at $1,132.44, concerting to Coindesk.com, at 2.39pm GMT, on January 20.