Media mogul Barry Diller says cryptocurrencies are a ‘trick’


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Veteran investor and IAC President Barry Diller said Friday that he does not trust cryptocurrencies and believes digital assets are a “scam”.

“I’m looking at some people you have and they’re talking about it – $ 40,000, $ 12,000, whatever – I think this is ‘crazy,'” Diller told CNBC.Squawk Box“after he originally indicated he did not want to discuss the crypto space.

Dealer’s comments followed an unstable week in the world of cryptocurrencies, in which a big sale on Tuesday and Wednesday pulled the price bitcoin at one point it fell more than 30% to $ 30,000, before stabilizing close to $ 40,000. Other crypto assets, including ether i dogecoin, also refused.

There was a dramatic sale amid heightened concerns about U.S. and Chinese regulations and environmental issues around bitcoin, Tesla CEO Elon Musk pointed out.

Cryptocurrencies have risen in the last year as large investors and institutions have begun to accept a new class of assets, especially bitcoin and ether. However, the rise of less serious versions like dogecoin, along with volatile moves in stocks like GameStop that have gained strength on social media, have sparked concerns about speculation in financial markets.

This week’s instability is not unusual for crypto space. In late 2017, bitcoin peaked at $ 19,000 before withdrawing sharply, eventually losing about 80% of its value over a 12-month period.

Many crypto bulls argue that the decentralized nature and limited circulation of bitcoin, along with new institutional support, can help it develop the role of a stock of value. Hedge fund veteran Stanley Druckenmiller said earlier this month that it is a potential dominant cryptocurrency for everyday trading probably not invented yet.

In the early afternoon on Friday, bitcoin was trading at just over $ 37,000, according to Coin Metrics.

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