Bitcoin investors beware: $6 billion cryptocurrencies' value gone in 1 day

Earlier this year, bitcoin prices skyrocketed to $20,000 per unit but since then the bitcoin has been on a falling trend.

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Bitcoin investors beware: $6 billion cryptocurrencies' value gone in 1 day
Updated Oct 13, 2018 | 15:38 IST | ET Now DigitalEarlier this year, bitcoin prices skyrocketed to $20,000 per unit but since then the bitcoin has been on a falling trend.
About $6 billion of the market value of all the cryptocurrencies was lost on Friday itself.
Bitcoin prices have fallen a little more than 5% in one week to around $6,200 from $6,600.
The wave of bitcoin investing gathered unprecedented attention globally from late 2016. Everyone on the street wanted to make quick money riding by on the ballooning prices of bitcoin, other cryptocurrencies. Earlier this year, bitcoin prices skyrocketed to $20,000 per unit but since then the bitcoin has been on a falling trend. Other cryptocurrencies which also received investor’s eyeballs were ethereum and litecoin.

According to a CNBC report, about $6 billion of the market value of all the cryptocurrencies was lost on Friday itself. The entire market capitalization of cryptocurrencies plunged $6.72 billion in 24 hours on Friday, CNBC reported citing Coinmarketcap.com data. The famous economist Nouriel Roubini, the man who forecasted about 2008 stock market crash, has said that “crypto is mother and father of all the scams and bubbles”. A number of warnings and caution signs with regard to cryptocurrencies have been issued by some of the most notable persons in the world of financial markets.

The biggest investor of the century Warren Buffett has said in an interview with Yahoo Finance: "if you buy something like bitcoin or some cryptocurrency, you don't have anything that is producing anything". "You're just hoping the next guy pays more. And you only feel you'll find the next guy to pay more if he thinks he's going to find someone that's going to pay more,” Warren Buffett added.

The Union Finance Minister Arun Jaitley has said that bitcoin is not a legal tender and further cautioned investors who have been putting their money as it is not regulated by any governing body.

According to the data available on Coinbase.com, bitcoin prices have fallen a little more than 5% in one week to around $6,200 from $6,600. The sharp dip was seen on Thursday when bitcoin tumbled to below $6,200 from $6,500.