Crypto Crash Surpasses the Dot-Com Bust
2018 has been one of the most difficult years in recent memory for cryptocurrency. Bitcoin crashed a few months back, plummeting to recent all-time lows. But it wasn’t just the world’s top crypto that suffered; nearly every altcoin created during the ICO explosion of the past two years was hit heavily, prices falling significantly across the world. With few winners and many, many losers, 2018 has been a year for the record books for cryptocurrency—in the worst of ways.
Wednesday saw the realization of another unfortunate record for the cryptocurrency community, as the overall average loss since January fell to a new high of 80%. This is officially a higher crash than the dot-com burst back in the year 2000. The dot-com bust was one of the biggest financial failings of the 21st century, with hundreds of thousands of investors losing money as they markets began to plummet for what seemed like no reason at all. Although everyone knows that the dot-com saga had a happy ending for both investors and the technology they backed, the same may not be said for struggling crypto.
The Reality Check
Some experts say that the cryptocurrency winter of 2018 is functionally a reality check for the starry-eyed revolutionaries that backed crypto technology with dreams that it would quickly change the world and head for near-immediate mass adoption globally. 2017 was a record year, with the media pushing more and more small investors into the bursting cryptocurrency bubble following the astronomic rise of Bitcoin’s value to above $20,000.
But professionals in the financial world were quick to express their trepidation with the emerging market, citing manipulation and security concerns as big reasons why the hype might not be justified. The anti-crypto proponents are still fair in number, with new economists speaking daily on their fears that the crypto markets might not be the revolutionary investments that some market participants seem to feel that they are.
Despite the gloom, some bulls in the crypto market continue to believe in the power of the cryptocurrency community to turn things around. Responding to the comparison to the collapse of the dot-com bubble in 2000, one analyst pointed out that the crash eventually resulted in some all-time highs for companies that survived the initial price decrease.
For cryptocurrency investors, this is a confusing and difficult time. It is unclear in which way the markets might move at any given moment, and a massive selloff is still happening, likely a result of residual investors who have realized that they might have simply jumped on the bandwagon just a little bit late. In any case, the next few years will be telling for the future of Bitcoin.
If one thing is certain, it is that cryptocurrency investors should be prepared for a difficult path into what optimists refer to as mass adoption and massive profits. If cryptocurrency is eventually going to reach new heights yet again, it will not be an easy road.