In the forums of the Reddit social platform, many people who have invested in cryptocurrencies like Luna are panicking over their millionaire losses.
The fall in the value of cryptocurrencies this week has resulted in a wave of worrying comments within the community, which is still hopeful that this digital money get your price back.
Millionaire losses and even suicide ideas are read in the forums of the Reddit social platform, according to the site New York Post.
“I lost over $450,000, I can’t pay the bank,” reads one of the top Reddit forum posts for Earth Moon, a cryptocurrency that has lost more than 99% of its value over the past week. “I will lose my home soon. I will be homeless. Suicide is the only way out for me,” say others.
“My ex-colleague tried to kill himself,” reads another featured forum post. “Basically, he moved all of his savings into crypto in 2021 and Luna was a major player in his portfolio,” he adds.
According to an article by Bloomberg, one of the main examples of those billionaires who have seen their fortunes destroyed is that of Brian Armstrong, founder of the Coinbase platform, who at the end of November had an estimated fortune of up to $13.7 billion.
Crypto millionaires lost large fortunes in a few days
And it has not only been the fall of this cryptocurrency considered “stable”. Bitcoin was trading around 29,600 on Friday afternoon, down 20% from last week and nearly 60% lower than its all-time high of $69,000 in November 2021. Other major cryptocurrencies, such as Ethereum and Solana, are now worth fractions from its historical highs.
“There are a lot of people out there who have gotten some real bruises,” said Garrick Hileman, head of research at Blockchain.com. “In crypto, strong tokens survive and weak tokens are wiped out.”
In the past, dips in cryptocurrencies have been touted online as a buying opportunity, sending prices back up, but now that the threat of a recession looms, it’s not clear that investors will buy during the fall.
The ongoing defeat fuels naysayers who have long argued that decentralized digital currencies were a fad fueled by low interest rates and pandemic-era stimulus checks.
Bitcoin ‘doesn’t produce anything,’ says Warrent Buffet
The New York Post picks up on criticism from JPMorgan Chase boss Jamie Dimon, who once said Bitcoin is worthless, as well as millionaires like Berkshire Hathaway, Warren Buffett and Charlie Munger.
Munger, 98, recently referred to crypto as a “venereal disease” that he was “proud” to have avoided. Berkshire Hathaway shares are up 5.6% in the past six months, while Bitcoin is down 56%.
The crypto crash comes as the Federal Reserve raises interest rates in an effort to cool inflation, sending high-risk tech stocks into a tailspin. The tech composite index, Nasdaq, is down 30% year-to-date and has been strongly correlated with the price of Bitcoin in recent weeks, according to Refinitiv data.
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