After a plunge of more than 50% in 2018, right now, one bitcoin is worth right around $6,400. The cryptocurrency’s all-time high was nearly $20,000 back in December.
Over the last few months, other cryptocurrencies have dropped as well, including Ethereum, Litecoin and XRP (Ripple).
Due to these drops in value, big-name investors like Munger and Buffett are warning other investors to “stay away from cryptocurrencies.”
Back in May, during an interview with CNBC, Buffett made a comment that bitcoin was “rat poison squared.” Munger made a similar comment during the Berkshire shareholder meeting stating that owning cryptocurrencies was “just dementia.”
However, eventually bitcoin might find a way to bounce back, and Blockchain technology just might transform our methods of paying for stuff in the future.
Blocktrade Capital’s CEO Ben Marks quoted: “Bitcoin is definitely here to stay.”
But many of the other cryptocurrencies might not make it.
Many publicly-traded businesses attempted to “latch on” to the “crypto craze.” A company called Biopix altered its name to Riot Blockchain, Long Island Iced Tea became Long Blockchain, and some other businesses started selling digital tokens to increase revenue.
Eastman Kodak developed KodakCoin and the cannabis and legal marijuana industry created PotCoin.
Though some coin offerings were legitimate, there were also numerous scams, as well. As an example, the SEC actually developed a phony ICO and called it HoweyCoins just to show exactly how easy it was for investors to be duped.
However, mainstream business in the entertainment and healthcare industries could utilize blockchain digital ledgers to “modernize” the way they keep their records.
Big banks like Goldman Sachs have also claimed that they’re planning to trade bitcoin contracts in the future.
Ultimately, this should be a good thing for bitcoin, as well as other cryptocurrencies that essentially depend on blockchain.