Jim Bianco, the president and founder of Bianco Research, an organisation providing data-driven insights into the economy, believes cryptocurrency is reforming the financial system. Speaking on CNBC’s Trading Nation on Wednesday, Mr Bianco predicted those who could tough out the notorious volatility of cryptocurrency can expect a big reward in the end.

He said: “Some of these coins, like Ethereum, are going to be a lot higher way down the road.

“But you’re going to have to stomach through much more of what we saw in the last week coming in the next several months or year or so.”

He added that cryptocurrencies have “a lot of promise”.

Mr Bianco continued to say that, once cryptocurrency starts to play a fundamental role in the real economy, overall prices will be vastly higher.

He also warned that all cryptocurrencies are vulnerable to up to 70 percent declines at any moment as the technology is still relatively new.

The world’s second most popular cryptocurrency saw a surprise price drop between May 12 and May 23, resulting in a total loss of more than $2,000 (£1,408).

At time of writing, the price of Ethereum seems to have made somewhat of a comeback, having jumped back up to around $2,700 (£1,901) over the last five days.

Those thinking about buying Ethereum should consider the risks of investing in cryptocurrencies, which are notoriously volatile. Here in the UK, the Financial Conduct Authority (FCA) warned: “If you invest in cryptoassets, you should be prepared to lose all your money.”

READ MORE: Ethereum price 2025 – Goldman Sachs predictions say Ether to dominate

Mr Musk said the Ethereum founder “fears the Doge” after Mr Buterin countered some of the Tesla CEO’s earlier remarks that Dogecoin could work as a mainstream form of currency.

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