Back in late 2017, cryptocurrency experienced a bubble that even its staunchest supporters couldn’t have predicted. With everyone and their grandmother learning about crypto for the first time, many were excited to get in on the action. Unfortunately, this was a group of unseasoned investors who had not been around for all of the wild fluctuations that had already taken place in the market. Bitcoin shot above $20,000, making new investors feel overly confident about its prospects. Therefore, they were completely unprepared for what happened the gains of November and December began to take a terrible nosedive. With some people investing their life savings into crypto, suddenly the losses began to hurt so much more.
Financial experts like Charlie Munger and Warren Buffett weighed in with their beliefs that crypto would not be a sustainable investment. Munger, in fact, went as far as to refer to Bitcoin as “evil”. Just recently, some chart watchers have started to claim that the Bitcoin Bust of 2018 is even worse than the dot com bust. For those who lived through this hectic time, it’s definitely a strong statement. However, those in the crypto community aren’t ready to call it just yet. After all, this has been the nature of the beast since the very beginning.
On Twitter and Reddit, one can see the crypto queens and kings posting memes and laughing about the current state of affairs. Although this may seem strange to an outsider, it is this type of gallows humor that defines the community as a whole. Furthermore, many have still reaped outrageous rewards. If, for instance, you bought a bitcoin back in 2012, you paid only $13 for it. Today, that same bitcoin would be worth over $6,000. The wild fluctuations do not change the fact that the market has still skyrocketed astronomically. Some people have become very rich from investing in crypto. And in online communities, many users have expressed relief that this latest crypto crash will drive out those who are not serious about supporting the future of blockchain technology.
Although Bitcoin still boasts the name recognition to keep it going relatively strong through some of the hard times, many altcoins have been suffering a great deal during this most recent bust. Ethereum (ETH) in particular has been walloped by an ever increasing lack of consumer confidence. However, crypto boasts a serious reputation for rallying.