THE CRYPTO CURRENCY THAT COULD HAVE 'DEVASTATING' EFFECTS ON THE MARKET

Cryptocurrency markets took a hammering Friday and have been on rocky ground over the past month.

One key reason behind this is related to another cryptocurrency called tether and allegations that the people behind it are using tether to prop up the bitcoin market.

Fears are rife that any collapse in tether could have huge ramifications for the bitcoin market.

 explains the story.

What is tether?

Tether is a cryptocurrency that its creators claim is pegged to the U.S. dollar. The idea is that it's much more stable than most digital coins that have huge price swings.

It was invented in 2015 and theoretically a person would pay $1 for one tether coin.

Currently, there are 2.2 billion tether in circulation, according to data from Coinmarketcap.com, a website that tracks cryptocurrency prices.

Who made it?

The digital coins are issued by a company called Tether Limited that is governed by the laws of the British Virgin Islands, according to the legal part of its website. It is incorporated in Hong Kong.

It has emerged that Jan Ludovicus van der Velde is the CEO of cryptocurrency exchange Bitfinex, which has been accused of being involved in the price manipulation of bitcoin, as well as tether.

What's the point of tether?

Many people trading on exchanges, including Bitfinex, will use tether to buy other cryptocurrencies like bitcoin.

Tether Limited argues that using this method to buy virtual currencies allows users to move fiat in and out of an exchange more quickly and cheaply. Also, exchanges typically have rocky relationships with banks, and using Tether is a way to circumvent that.

"Exchange users know how risky it can be to hold fiat currencies on an exchange. With the growing number of insolvency events it can be quite dangerous. As mentioned previously, we believe that using tethers exposes exchange users to less counter-party risk than continually holding fiat on exchanges," the company explains in a whitepaper on its website.

So what's the controversy?

Firstly, many have raised concerns that tether is being issued by the people who own the Bitfinex exchange. Critics argue that there should not be such a close relationship.

But the issues run deeper than that. Fears have been raised that Tether Limited doesn't actually hold enough U.S. dollars to back all the digital coins in circulation. These rumors have been circulating for a few months.

Earlier this week, Bloomberg reported that the U.S. Commodity Futures Trading Commission sent subpoenas on December 6 to Bitfinex and Tether, citing an anonymous source.

Tether has also been releasing more coins onto the market In January, alone Tether has released 850 million new digital tokens. The company has been increasing the number of coins in circulation over the past few months, and this has coincided with the record highs seen in cryptocurrency prices, causing some critics to suggest there is price manipulation going on.

"Over the past couple of months, a huge amount of tether has been created, it has shifted to the Bitfinex exchange and presumably buys bitcoin and other cryptos. This, I believe, has been keeping the price up," Nicholas Weaver, a senior researcher at the International Computer Science Institute at Berkeley, California, told CNBC by phone Thursday.

To back these claims up, an anonymous statistical analysis posted online last week looked at the relationship between bitcoin price and tether. The conclusion was that tether is created when bitcoin is falling.

"Tether printing moves the market appreciably; 48.8 percent of BTC's price rise in the period studied occurred in the two-hour periods following the arrival of 91 different tether grants to the Bitfinex wallet," the analysis said.

What does Tether Limited say?

CNBC has reached out to Tether Limited for comment but has not received a reply.

In September 2017, the company released a document entitled "proof of funds," allegedly showing that it had the required reserves. However, it was far from clear and the names of the banks were blacked out.

Furthermore, Friedman LLP, the accountancy that carried out the audit, has cut ties with Tether. According to a report from CoinDesk last week, the two parties had "dissolved" their relationship.

What next?

Given that the anonymous report claims tether was responsible for 48.8 percent of bitcoin's price rise in 2017, the author said there could be a 30 percent to 80 percent correction. Perhaps this is already taking place as bitcoin fell below $8,000 Friday for the first time since November 24.

"If a tether debacle unfolds, it will likely cause quite a devastating ripple effect across many of the exchanges that see most of their volumes traded against the supposedly USD-backed cryptocurrency. In such a scenario, we may see cryptocurrency prices retreat quite dramatically in the next month or so," Thomas Glucksmann, head of APAC business development at cryptocurrency exchange Gatecoin, told CNBC by email Friday.

The other reaction could be something equivalent to a bank run. This would happen if the value of tether goes to zero and then people suddenly request their fiat money back. Tether can no longer prop any other cryptocurrency up.

"You could see a spike in prices in tether-only bitcoin exchanges. So, on those exchanges only you will see a run up in price compared to the bitcoin exchanges that actually work with actually money. So you would see a huge price diverge as people see that only way they can turn tether into real money is to buy other cryptocurrency then move to another exchange. That is a bank run," Weaver said.

I MAKE $10,000 PER MONTH WITH THE AMAZON AFFILIATE PROGRAM

The site is less than two years old and consistently does between $10,000-$11,000 per month in revenue.

My expenses consist of web hosting, stock images, and my only writer, an expert copywriter in my niche who I pay about $600-$700 per month (he's a superstar).

So on average, depending on the month, we're talking about $9,200-$10,200/mo in pure profit, doing about 5-10 hours of work per week.

Here's the gist of what I do:

Enter a very broad niche (let's say, "health"), and write two types of content to fill my site with:

1) informational type content that appeals to readers of my site
2) product-based roundups to earn affiliate income with.

This is nothing groundbreaking: it's pretty much what every IM blog recommends doing.

Let's take a few examples: for the 1st type of content, it's just informational type posts that your readers would enjoy.

Example: 21 (Not-Boring) Chicken Breast Recipes Made for Meal Prep

For the 2nd type of content, I do a roundup of the best products in my niche.

Example: The Best Ultralight Sleeping Bags of 2017

There is nothing complicated about this content.

You all read your favorite sites/blogs every single day, and you've seen this type of content on the internet a thousand times!

The trick is, it has to be high-quality. Exceptional quality.

Read some articles on Greatist .com and you'll see exactly what I'm talking about. If you can write (or find a writer who can write) that type of content, then you're in business.

That covers the content side of things, the types of posts that you'll fill your website with (I like to do about 75% info content vs 25% commercial content).

The second half of the coin is getting backlinks to your info content.

I'm not going to write an entire guide on how to get links, but I recommend checking out BHW to learn best practices on how to do outreach to bloggers in your niche to pick up some links.

Some of the techniques I've found most success with (Google them): skyscraper, guest posting, and resource-page link building.

I've built probably 200, white-hat manual outreach type links to get where I am today. That may sound like a lot, but it's not that many.

The key is: they are all natural, relevant, and authoritative.

Then, over time, your content will start to rank high in Google due to the quality of your content and quality of your links. Your "best camping tent" guide will rank on page 1, people searching for that query on Google will land on your site, click your affiliate link, and you'll start earning some money.

Do that 100x over with different buyer's guides (best camping backpack, best camping flashlight) and you can start earning some serious coin.

So in short, if you can do these three things:

- Pick a broad enough niche that appeals to a lot of people and which offers lots of physical products for sale (think: health, beauty, fitness, pets)

- Produce extremely high-quality info + product-roundup content

- Learn how to do manual outreach to bloggers in your niche asking for backlinks

Then you should be on your way to earning a decent side-hustle income.

P.S. While I only work 5-10 hours on the site now, getting this all up and running from the ground-up on

Day 1 was a LOT of work and required about $7,000 in start up costs (which all went to my writer; that
number can be close to $0 if you can write hundreds of thousands of words yourself).

HOW CAN YOUR MAKE MONEY ONLINE IN 2018

Virtually every 'Make Money Online' course, ebook, website, blog, etc. will explain the goal of internet marketing is to have a system that will make you money on autopilot.

1. find a product or offer you would like to promote.
2. create articles promoting that product or offer.
3. get traffic to those articles.

Laid out like that it really looks simple doesn't it? You can even do it with or without your own website. Just 3 steps to make money online!

The better ebooks, courses and seminars add two extra steps to take advantage of an old marketing adage called the 'Rule of 7'. So, if you've been looking for the answer to "How to make money online?" then here is the formula to follow:

1. find a product to sell.
2. set up a website targeted for people who want to buy that product.
3. entice visitors to submit email address for newsletter.
4. use an email autoresponder to send series of newsletters promoting the paid product.
5. set up a traffic campaign to get visitors to your website who want to buy that product.

Those 5 basic steps give you a powerful (yet still simple) formula to make money online.

At the basic level, it really is that simple. That's why online marketing appeals so much to the 'Get Rich Quick' seeker. The problem is that 'simple' does not necessarily mean 'easy'. Where it gets more complicated is in making sure each of those steps are done effectively.

This is where the 'Get Rich Quick' seekers jump off the bandwagon and start yelling SCAM. As I said above, 'simple' isn't the same thing as 'easy'. While the 'Get Rich Quick' books do overhype how easy it is to get results, it's still a fact that this is a proven system.

If you really want to learn how to make money online, you need to ignore the hype. There is no way that anyone can guarantee that you can make XX amount of money in XX amount of time. There are too many variables that have to be taken into consideration. Everything from how good you are at niche research all the way through how good you are at understanding the material and following instructions.

The most important things you have to ask yourself are "What are your actual expectations?", and "How well do you understand what your actually doing for each step?".

Your expectations will determine how long you'll follow through with the plan. If you expect to make $10,000 in two weeks, and after 3 weeks you still haven't made a sale then you'll probably give up and call it a scam, (That's usually caused by salespages making unrealistic promises). Even more importantly is how well you understand what needs to be done for each step. Even if it is possible to make $10,000 in two weeks, it isn't likely to happen unless you do everything exactly right.

Your expectation shouldn't be to make $10,000 in two weeks. Instead, your goal should be to learn exactly how to do each step necessary for a successful marketing campaign.

So, if you've been searching google, forums, blogs, ebooks, etc. for the answer to "How to make money online?", or even worse looking for "How to Get Rich Quick?", then you're asking the wrong questions. You've probably already found that answer over and over again, but keep ignoring it because that 3 step or 5 step formula I outlined above isn't complete enough for you to understand how to make it work.

Instead you should be asking questions about how to do each of those steps;

 "How do I find a good product to sell?", "How do I find the best niche to market in?", "How do I set up a website that effectively promotes a product?"

 "How do I write articles that will lead a prospect to buy?",

 "How do I entice visitors to submit their emails?", 

"How do I get visitors to my website that are looking to buy?"

If you search the BHW forum you'll find those questions and many more are answered for free in many threads on this forum.

"How do I make money online?" is the wrong question. You just have to learn to ask the right questions. Finding answers to all those more specific questions are how you'll learn to make money online.

HOW TO GET FREE DOMAIN AND HOST 100% - 2018

Hi linko tech people,

I have a method for you guys to get 100% free hosting & domain name.
Maybe this can help you start that project you were not sure will work. 

don't forget to leave your comment below

WARNING:
free domain names & hosts are awful please keep that in mind.​

Step 1: got to freenom.com and buy a .ga or .tk domain, its free
Step 2: go to viewen.com and ask for free hosting, you will have to explain why you need a host...
Step 3: Remember your viewen name servers this might look something like this DELHI4.VIEWEN.COM
Step 3: once you have your host and domain name go to freenom then my domain and click on edit domain
Step 4: change your name servers to the viewen one (DELHI4.VIEWEN.COM) you copied earlier.

That's it, congratulations on your site now go start that project.

MAKING MONEY ONLINE IT ALL STARTS WITH YOU NOT METHODS NOT GOOGLE YOU

I have been on this forum for a while now and there is one thing that never fails.. at least a couple times every day someone posts a thread asking how to make money. Some want to make $5 per day, some have higher goals at $10 per day (that was sarcasm for those wondering) and then some want to know how to make $5,000 within 30 days to pay for some important medical procedure..

I'm not knocking small goals like $5 or $10 per day. Everyone has to start somewhere but I wanted to start a thread that talks about what it takes to actuallyreach your goals.

It doesn't matter if you want to make $5 per day to fuel your video game obsession or if you want to make $10,000 per month to support your family.. it all starts with YOU.

So many threads ask for methods, for secrets, for the easy way out. Unless you have the activation key for the PayPal monkey generator you will find that there aren't any magic secrets to fill your bank account with money.

I want this post to become a place where every noob can get a serious dose of reality. This same info will work for a kid in high school that wants extra money for video games and going out with friends on the weekends or for a man in his 30's that wants to start earning money online and has a family to support.


DISCLAIMER: THIS IS NOT EASY.

Seriously. You have to know from the start that making money online is hard in the beginning. You need a steady source of income to stay above water and to invest in your online ventures.

So, for anyone that has $0 in their bank and has bills coming up due I want to give you this real advise: GO GET A REAL JOB. Seriously, you will have so much trouble if you don't have a little nest egg to work with and have your bills covered. The majority of people fail because they jump in at the wrong time.

Making money online isn't something you try to make it in when times are bad. You are setting up yourself for failure. Trust me.. get a job with a steady paycheck and devote your time away from work to making money online.

So many people associate online money with easy money. That is so far from the truth. It's hard. Very fucking hard!

If you are serious about making money online follow these guide lines. It's just my opinion and nothing is set in stone here.. but I feel like I have been around long enough and have had enough success online to be able to give my 2 cents at least. My goal is for some noobs to see this and see what it really takes.

So many "make money online" blogs make it seem easy. Why? Because they want the noobs to sign up for their hosting affiliate offers and WP theme affiliate offers.. and buy all of their MMO affiliate products. It's such a cock fest.. all these self proclaimed gurus telling noobs they can make millions online with just a hosting account (that pays them a nice commission)..

Fuck those gurus (that are really broke muppits) and their false claims. This is the reality of making money online..


You Need Money to Make Money

The gurus will tell you that you can start making money virtually over night if you just get some traffic to your website and start ringing in affiliate sales. It's that easy, right? WRONG. Again.. they are just trying to sell you their product or get you to sign up for hosting through them. (Sadly even the most "elite" <more sarcasm> gurus come to BHW to spit their BS just to get hosting affiliate signups).

The CPA and affiliate marketing space is crowded. There are so many people trying to make money. 80% of them don't stand a chance. Who makes all the money? Those that have money to spend and invest. They are the ones that have the coin to invest in proper SEO and control the top of the PPC results. They are also spending crazy money on Facebook ads and every other traffic source that produces results. They have money to test the shit out of ads, banners, and traffic sources.

So many people will post a thread stating they have $50 to invest in PPC. Stop.. save your money. That $50 will buy you dinner for a few nights.

Understanding that you need money to make money is the first step.


You Can't Spread Yourself Too Thin

We see it all the time on the forum.. people are trying to build an authority site and monetize it with AdSense one minute then the next day they are asking about building a clickbank review website and then a few days later they want to build Instagram accounts. Enthusiasm is great and wanting to venture into many different areas is a nice goal.. but it isn't practical. And if you spread yourself too thin you are going to fail.

In the beginning you need to pick one thing to focus on and spend all your time learning everything you can about it.. whether it's building a blog and monetizing it with CPA offers and AdSense, or running CPA offers using paid traffic sources.

Find one thing that you are interested in and stick to it. Don't bounce around between several different things. You have to dedicate all of your time and focus on one project at a time, especially in the beginning.

Look at the best IMers in the game.. they are experts in one area usually. That is how they become so successful. They aren't all over the place trying to do it all. They master one thing and continue to evolve with it.


You Can't Expect Instant Results

This one kills me and it's amazing how many people expect to make money overnight or even in their first month. I blame a lot of the guru crap that is online. They want their sheep followers to think that they can make $100K a year and drive an exotic car if they just buy their $47 eBook.

If you spend some time to get to know some of the experienced members on BHW you will know that they failed more times than they succeeded. Some didn't start to make money for several months.. but they knew if they kept learning and kept moving forward they would eventually find success.

This also goes back to the first point I made about needing money to make money. In the beginning your regular job is in place to pay your bills and support your family while you learn IM. If you don't have that safety net the stress will cause you to panic and make bad choices. When you have that job and you know your bills are covered you can learn and suck in info at your own pace. Of course everyone wants to make money online ASAP but that's not how it works. You need to learn, read and figure it out at your own pace. With your bills covered you don't NEED instant results.. allowing you to figure it out at a pace that is comfortable and will allow you to actually figure it out.

​

You Can't Give Up Easy

I bet if you took 5 minutes you could find a thread within the last week where someone is complaining that a particular method doesn't work. How many times have you heard...

"PPC sucks.. it doesn't work!"
"SEO is dead.. it doesn't work!"
"Affiliate marketing is dead.. it doesn't work!"
"Email marketing is dead.. it doesn't work!"

You get the picture..

Why do these people say that something doesn't work? Because they don't give it enough time. They expect instant results and quit before they figure it out. If IM was easy wouldn't everyone be working from home or working from some exotic location while models fan them down and feed them grapes?

You should be thankful it isn't easy. Who would pour you a beer at your local pub or come mow your lawn and take care of your yard? Working online and making a living online is very hard. Did I mention this yet? 

Just like a professional athlete trains nonstop.. someone with goals of making money online needs to read, study, test.. nonstop. If you want it bad enough you have to put your head down and DO THE WORK.

Go into this knowing that you aren't going to quit. You will eventually figure it out if you just promise yourself that you will NEVER give up.


You Can't Put All of Your Eggs in One Basket

Once you do pick something to pursue you need to make sure you diversify as much as possible because IM is always changing and shit happens.

Let's pretend you decide to start a blog about personal finance and you have selected the following ways to monetize your website:

• AdSense - ad blocks throughout the site
• ClickBank offers - offers mixed in your blog posts and will send offers to your email list
• CPA offers - offers mixed in your blog posts and will send offers to your email list

So, you want to push as much traffic to your blog as possible with the goal of them clicking on ads, clicking on your affiliate links in the content or joining your email list through some kind of offer.

You need to find as many traffic sources as possible.. that way you aren't screwed when one dries up or just disappears..

So, a few traffic sources you would want to look into:

• SEO
• PPC
• Facebook Ads
• Guest Blogging
• Media Buys

This way if a Google update kills your traffic overnight you can just increase your other traffic sources... just turn the dial and adjust. If you put all your eggs in one basket and spent all of your time and money on SEO you would be at $0 the minute that update killed your SEO.

​

You Need to be Minimalistic Starting Out (and maybe give up some luxuries)

Don't be like CEOSam and all the other fake IMers that are worried about materialistic crap. The people that get their first taste of money and go out and buy a watch or some other stupid material possession are doomed for failure. You have to stay grounded and remain focused.

This industry can do a 180 instantly and if you lose your focus you will fall on your arse fast. I'll use myself as an example.. I could have any crazy car I wanted. Not bragging.. just making a point. Instead of spending a ton of money I bought something that I had wanted since I was very young.. an a4.. it's a nice car but it's no Maserati or Veyron.. but that doesn't matter to me.

Don't set out to impress anyone. It isn't going to make you any more money. Know what you SHOULD spend your money on? A great computer, laptop, smartphone and online tools and software.. things that will help you improve your online marketing.

You need to also look at what you spend money on and look for ways to cut spending.. this allows you to use that money to help your IM career. If you eat out a few times every week (I was seriously guilty of this) cut back and cook your meals at home. More ads.. a new blog design.. more links.. etc.


You Need to Save Money

This goes back to the previous point. When you start to make money and you see it roll in DO NOT spend it. Put some away for a rainy day. If your goal is to be self employed then you need to think about the big picture.

There are no health benefits.. retirement funds.. etc. You are 100% responsible for your future. When you do start making money I suggest you hire a proper accountant and work with a financial adviser and planner.

When you are 75 years old you will be glad you put some money away instead of buying that sports car or spending your money chasing girls.

I'm not saying you shouldn't have fun.. you should have plenty of fun.. just don't live beyond your means.. and focus on saving money.

I bet if we started a thread on BHW asking people to post about experiences they had making a shit load of money and then having nothing there would be plenty of people coming forward to tell their story.

When you first taste the money it is like a drug.. have fun, but just be smart about it. Tuck some dough away and pretend you don't even have it. Invest it properly.


You Need to Treat IM Like a Real Business

This is where a lot of mistakes are made. People think they can work when they want and be successful. IM is a real business.

What would happen if you just showed up to a regular job when you wanted? You would be fired.

What would happen if you just left after a couple hours of working? You would get fired.

Yes, part of IM is the ability to work from anywhere in the world and not work as many hours. It is up to you to determine how much you work and when you work. Some deals will require more work. Heck, I know people with successful online businesses that might work 2 hours a day.. but they worked plenty of 20 hour days when they first started!

Just don't cut yourself short.. and be professional. Respond to emails quickly. Address any issues right away. Just like a real business.. because IM is a real business!


That's the end of my rant.. I hope I don't scare any of you newbies.. I seriously hope this helps some people figure this out properly. Any questions, feedback or points to contribute/add fire away. As always I hope you enjoyed the read. Until next time.. Ciao for now!

AVOID GOOGLE FOR REDIRECT YOUR BLOGS TO COUNTRY-SPECIFIC DOMAINS

Google does nation particular redirection for specific restriction – that implies they can without much of a stretch blue pencil or piece a blog entry, or other whole blog website, in one nation yet at the same time serve that page in other geographic districts. Blog redirection just happens in the event that you are on a blogspot area and not if your Blogger blog is on a custom space.

Google now redirects Blogger blogs to country-specific domains. For instance, if you open example.blogspot.com in your web browser, you will be redirected to example.blogspot.in if you are located in India or to example.blogspot.co.uk if you are accessing the blog from UK.

My traffic logs suggest that country-specific redirection in Blogger is live in at least 15 countries. They are India [blogspot.in],

 Australia [blogspot.com.au],

 UK [blogspot.co.uk], 

Japan [blogspot.jp], 

New Zealand [blogspot.co.nz],

 Canada [blogspot.ca], 

Germany [blogspot.de], 

Italy [blogspot.it], France

 [blogspot.fr], Sweden

 [blogspot.se], Spain 

[blogspot.com.es], 

Portugal [blogspot.pt],

 Brazil [blogspot.com.br],

Argentina [blogspot.com.ar], 

Mexico [blogspot.mx]

Prevent Blogger from Redirecting to Country-Specific Domains

This country based URL redirection is likely to impact your Blogger blogs in a not so positive manner. For example:

The social stats – like your Facebook Likes, Google +1s and Tweet counts – for your blog posts may be reduced as the URLs for the same blog post will be different for different visitors.

You will have a similar problem if you are using an external commenting platform like Disqus or Facebook Comments because the blog URLs will be different even when the underlying page is the same.

Also, if canonicalization isn’t implemented properly, it may cost you some Google juice as external websites may link to your country-specific pages.

Some users have reported a dip in Google AdSense earnings when pages are served through country-specific domains.

If you are not happy with the idea of Blogger redirecting your blog to a different URL, you can add the following piece of code to your Blogger template and it will always serve the .com address to your visitors irrespective of their geographic location.

Go to your blog inside the Blogger Dashboard and choose Template. Then click the “Edit HTML” button followed by “Proceed.” Next, copy-paste the following code into the template after the <head> tag.

<script type="text/javascript">

  // Written by Amit Agarwal
  
  /* Get the full URL of the current blogger page */
  var blog = document.location.href.toLowerCase();

  /* Do not redirect if the domain is .com already */
  if (!blog.match(/\.blogspot\.com/)) {

    /* Replace the country TLD with .com and ncr switch */
    blog = blog.replace(/\.blogspot\..*?\//, ".blogspot.com/ncr/");

    /* Redirect to the new .com URL in the current tab */
    window.location.replace(blog);
  }

  // Source: http://labnol.org/?p=21031
  
</script>

Click the Save Template button and now your Blogger Blog will always serve with the blogspot.com URL.

The JavaScript snippet gets the URL of the current Blogger page and if it isn’t served from the .com domain, the code replaces the country specific TLD (like blogspot.co.au or blogspot.pk) with the blogspot.com URL. It also adds the /ncr switch to force-redirect the visitor to the blogspot.com address.

[5/4/2018] – The snippet is now more efficient and can handle both www and non-www blogspot URLs including those served from secure HTTP (https).

[11/9/2018] – Code fixes

BITCOIN STILL PROBABLY HAS TO DROP ANOTHER 15 PERCENT OR SO TO GET TO ITS REAL VALUE IN THE CURRENT MARKET ENVIRONMENT,

Bitcoin tokens sit reflected in this arranged photograph in London, U.K. Crypto investor Brian Kelly on shorting bitcoin 

Bitcoin still probably has to drop another 15 percent or so to get to its real value in the current market environment, BK Capital Management founder Brian Kelly told CNBC on Thursday.

"The intrinsic value, the way I measure it is transactions. And I do kind of a simple regression with number of transactions and velocity. And you get an intrinsic value somewhere in the $8000s," said Kelly.

Crypto investor Brian Kelly on shorting bitcoin from CNBC.

Last year's 1,800 percent meteoric rise in bitcoin peaked at over $19,000 in mid-December. Since then, the world's largest cryptocurrency has fallen about 50 percent to around $9,500 on Thursday morning, according to the CoinDesk index, which averages prices from the world's leading exchanges.

Despite the slump and his prediction for further downside, Kelly told "Squawk Box" he would never consider shorting, or betting against, bitcoin.

"This is such a young technology. To short it, makes absolutely no sense in terms of the risk/reward because this thing can move 20 or 30 percent in a day. So the most I'm going to make is 100 percent of my downside [over time]. And the worst is I'm going to lose 30 percent in a day. And then compound that," Kelly said.