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The Latest “Bitcoin is Dead” FUD Attempt Debunked

The Latest “Bitcoin is Dead” FUD Attempt Debunked

The market is finally showing signs of recovery as Bitcoin is dictating a bullish return with the rest of the cryptocurrency market, also breaking the resistance of 4,000$ and going over the initial value of 3,208$ to its current price of 4,024$ in less than a week.

However, it appears that whenever the crypto market acquires a positive momentum for entering the green zone, a proclamation of Bitcoin being “dead” or “worth nothing” immediately spread across the news portals almost like wildfire.

That is how many news websites focused on cryptocurrency and blockchain are reporting that Erik Finman, known as “teenage Bitcoin millionaire” stated that Bitcoin is “dead”.

Erik Finman is said to have gotten millions from investing in Bitcoin according to MarketWatch.com where Finman talks about why he believes that investing in Bitcoin just doesn’t pay off anymore in an interview he did with the mentioned news portal.

The interview was published on December 14th, and it carries a handful of disputable information that calls for debunking.

Claim 1: “Finman became a teenage millionaire during the crazy run to 20,000$”

“Erik Finman, who became a teenage bitcoin millionaire during the crazy run to $20,000, has warned bitcoin maximalists — believers in the world’s best-known cryptocurrency — that the long-term outlook is bleak.

Finman hit the headlines as a teenager in early 2018 when his rags to riches bitcoin tale made him an overnight superstar. At the age of 12, Finman began to purchase bitcoin with a gift from his grandmother.”

According to MarketWatch.com, Erik Finman became a millionaire once he sold his Bitcoin investment at a very peak of BTC in the market back in December 2017 when the entire market surged to touch record prices.

However, this isn’t entirely true, as Finman spoke for Bitcoin.com earlier in 2017, where he talks about details on how he became rich by investing in Bitcoin, saying that he sold his first investment already back in 2013 after investing 1000$ in BTC two years earlier in 2011.

The 1000$ investment was a gift from his grandmother back when he was only 12 years old, 2 years later paying off to the young investor with a return of 100,000$, which is how the Bitcoin youngster, often called “Bitcoin prodigy,” founded his first startup named Botangle, eventually getting to CBS news.

In 2014, CBS made a short interview with back then 15-year-old Finman, where the “young Bitcoin millionaire” invested his fortune of 100,000$ made with BTC in starting an educational hub called Botangle.

Even though the 12-year-old Finman has made a small fortune at a very young age from only 1000$ of starting capital, the profit of 100,000$ is still far from millions.

However, as explained in the post by Bitcoin.com published back on June 23rd, 2017, Finman was offered 100,000$ or 300 BTC in return for selling the peer-to-peer tutoring startup Botangle by an investor that Finman never named in any of the interviews.

According to Finman, he accepted 300 BTC in exchange for Botangle ownership, back in May 2015 when Bitcoin was valued at around 200$.

Finman further claims that he kept other investments besides from Bitcoin, however without specifying whether these investments were places in cryptocurrency, stocks, or shares. 

Even though the article claims that Finman got his millions from Bitcoin investment at the very peak when Bitcoin was priced around 20,000$, a bet Finman had with his parents tells a different story.

Apparently, Finman made a bet with his parents who previously agreed on Finman dropping out of high school, that he wouldn’t have to go to college if he was to become a millionaire by the age of 18.

In a rather ecstatic and revealing post published by Finman on Facebook from his official account, Erik claims he had become a millionaire.

Finman proclaims in the post above that he had won the bet, while the post was originally published back on June 20th, 2017.

Back at the end of June in 2017, Bitcoin was still 6 months away from hitting a record price of 20,000$, which means that Finman actually sold BTC back when the top cryptocurrency was traded at 2,742$ per one unit.

Do a simple calculation and you will easily conclude that Finman could cash in on 822,600$ with 300 BTC at the price of 2,742$.

822k is most certainly a flattering profit return, however, still doesn’t make a talked-about million or millions even. 

Claim 2: “Bitcoin is dead, it’s too fragmented…I just don’t think it will last.”

“But the bitcoin early adopter has warned investors that putting all their eggs in one basket is a mistake, saying the largest digital currency has a finite shelf life.

“Bitcoin is dead, it’s too fragmented, there’s tons of infighting I just don’t think it will last,” Finman told MarketWatch. “It may have a bull market or two left in it, but long-term, its dead.” That’s a hot take coming from a guy who bought bitcoin in 2011, turning $1,000 into more than $4 million.”

In accordance with the interview with Erik Finman as seen on MarketWatch.com, the young investor doesn’t believe that Bitcoin will get more than one or two bull runs, claiming that the top cryptocurrency is dead.

However, only several months before the interview, back in December, Finman shared an interesting “prediction” about Bitcoin and 2018, claiming that the bear trends in 2018 are a test, where anyone who passes the test will be rewarded.

The series of pro-cryptocurrency and Bitcoin-focused lobbying doesn’t end with this tweet, as Finman even shared basic Bitcoin investment advice back in September from his official account on Twitter.

Before turning against Bitcoin in December as reported by numerous crypto and blockchain related portals, Finman went bullish on Bitcoin even on November 15th when the cryptocurrency market was hit hard by the heavy bear trends that took around -50% of the total value of the market in the course of only 30 days.

From believing that the “Bitcoin is becoming more usable as a currency” to “Bitcoin is dead” face, Finman turned against BTC in the course of less than two months.

However, as Finman shared on his Twitter page several days after the initial interview where he proclaimed BTC as dead for MarketWatch.com, “TIME’s most influential teen” stated that he didn’t leave Bitcoin, “Bitcoin left him”.

In the Meanwhile, …

In the meanwhile, Erik Finman, who after proclaiming Bitcoin dead in the article, also added Litecoin to his list of crypto obituaries, however claiming that he still appreciates cryptocurrency, while pouring some praise on Ethereum (ETH) and Zcash (ZEC) as his top picks.

As stated by Finman, Bitcoin Cash also has technological potential, “but developers have done a bad job at marketing it.”

Moreover, Botangle, the company said to have brought 300 BTC to Finman that he later cashed in makes nothing more than a Github link that allows you to download a “virtual classroom” where you can hold lectures and live peer-to-peer tutoring, seems to have no other owners listed beside from its founder Erik Finman.

As you can see on LinkedIn and Crunchbase.com, as well as based on Erik Finman’s profile on LinkedIn, Erik Finman is still listed as CEO and founder of Botangle, while his company is ranked on Crunchbase by activity as the 84,022nd out of 100,000 different startups and companies.

The name of the alleged investor was also never officially mentioned by young Finman.

In his free time, besides from sharing predictions on cryptocurrency investments, Finman is designing and creating Dr. Octopus suit:

Sharing advice on why high school students should drop out:

Planning the launch of the ICO that never happened:

Sharing his insights on over-priced room service bill:

Or sarcastically updating youngsters on his personal health, advising not to “vlog on cocaine”:

Regardless, Erik Finman is still considered a prodigy and also one of the brightest young minds, mostly referring to the recently launched satellite:

In accordance with TechCrunch, Taylor Swift’s album “1989” went up with Finman’s satellite, said to have been launched in cooperation with NASA as a way of celebrating the 40th anniversary since Voyager was sent in space back in 1977 with Carl Sagan’s Golden Record.

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