Billionaires Who Create Crypto Money Predict This Investment Will Drop – This week, the world’s cryptocurrencies suffered a severe crash. Crypto value shrank by nearly 35 percent in total capitalization in just one day. Even though this shocked investors and the market, apparently Vitalik Buterin, the billionaire who created Ethereum, admitted that he had predicted this would happen.

In an interview with CNN, the 27-year-old mogul said cryptocurrencies are ‘in a bubble’, but it is difficult to predict when that bubble will burst.

“This could end now. It could end in a few months,” said Buterin.

According to cryptocurrency portal CoinMarketCap, the Ethereum price fell to USD 2,092 last week. This is 41 percent cheaper than the previous position of USD 3,559. Although, managed to recover over USD 2,900 on Thursday, today the cryptocurrency is trading at USD 2,283 per unit on a downward trend.

These figures are still far from the all-time record price of USD 4,337 reached on May 12, according to data from Coindesk.

Citing Entrepreneurs, the fall in Ethereum’s value affected Vitalik Buterin’s public portfolio, which only three weeks ago was named the world’s youngest billionaire. His account went from USD 1.1 billion to USD 870 million in one day.

However, the fall of the digital currency did not surprise the Russian-Canadian programmer.

“We have had at least three of these big crypto bubbles so far (…) And quite often, the reason the bubbles finally stop is because some event happened which just makes it clear that the technology doesn’t exist yet,” said the Ethereum founder.

Currently, Ethereum is the currency that occupies second place by market capitalization, behind only Bitcoin. One of the reasons for its growing popularity is that it is used in NFT transactions or non-fungible tokens, a new ‘crypto’ sensation.

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The sudden collapse of cryptocurrencies can actually be explained by two important events that took place in the last week. First, on Sunday May 16, Elon Musk stated on Twitter that Tesla will no longer accept Bitcoin as payment.

Second, the announcement that China will ban transactions with cryptocurrencies to the country’s financial institutions. These two major events are believed to be the culprits of the collapse.

Reporter: Priscilla Dewi Kirana

Source: [azz]

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