Similarly, in just a month litecoin lost half its value from a December 2017 peak of about $375. Ethereum now trades at about $390, down from almost $1,300 in early January.
Jean-Luc Bourdon, CPA at BrightPath Wealth Planning in Santa Barbara, Calif., explains cryptocurrency to clients in two words: Beanie Babies. “Beanie Babies and bitcoins have a functional purpose but do not generate income -- no rent, dividends or interest,” he said. “Except for their popularity, they can easily be duplicated. Relying on the popularity of a particular good in an emerging and competitive field is, of course, hazardous.”