Erik Finman, a teenager who became filthy rich during the Bitcoin boom, has now issued a warning to Bitcoin maximalists, the term given to those who believe in the Bitcoin revolution, that the currency has a bleak long-term outlook. Finman has a habit of bashing digital assets. In 2017, he told Mic that he wasn’t convinced about Ethereum, urging investors to go short on the digital asset.
The teenager got into cryptocurrency back in 2011, when the then 13-year-old bought cryptocurrency with money given to him by his grandmother. As of this year, the teenager was worth up to $4 million. However, he is now giving a pretty dark outlook to the future of Bitcoin and Litecoin, warning prospective investors that they will be wrong to put all their eggs in a basket, according to a report on MarketWatch.
“Bitcoin is dead, it’s too fragmented, there’s tons of infighting I just don’t think it will last… It may have a bull market or two left in it, but long-term, it’s dead.”
Finman also expressed pessimism about Litecoin, which has taken a 95% tumble from its peak, saying that it is currently on its way out.
“Litecoin has been dead for a while,” he said. “It’s like when the sun is going down, and there’s that eight-minute period just before it goes dark. Litecoin is in its seventh minute.”
Strangely enough, the teenager is actually of the belief that ZCash (ZEC) and Bitcoin Cash (BCH) are both better investments than the original cryptocurrency. He said that Bitcoin Cash has a stable technology, stating that the only problem it has is poor marketing, considering the August hard fork and the other circumstances that led to its creation.
Over the past days, Bitcoin hit a one-year low of $3,126, amid reports from analysts that it could even fall below the $3,000 line before the end of the year. However, is has now increased to $3,552.
The asset has dropped over 80% of its value since last December, when it hit an all-time high of $19,783. It’s ironic that Finman could be so pessimistic about the survival chances of a cryptocurrency that has brought him so much wealth, but he is not alone in his view. Stephen Innes, Head of Trading for the Asia Pacific at U.S. commodity exchange Onada, predicted that this bear market would trigger a massive selloff that will see the value of the asset plunge as low as $2,500.
Innes told the network, at the time:
“There’s still a lot of people in this game. [If Bitcoin] collapses, if we start to see a run down toward $3,000, this thing is going to be a monster. People will be running for the exits.”
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Last modified: May 20, 2020 1:58 PM UTC