What Happened to the Cryptocurrency Boom?

Is cryptocurrency out of time?
Source: Pixabay

In a game of online slots the situation is very clear; a wager is made, and there is a fair chance of not only making the wager back, but a profit beyond the initial betting amount. The bettor understands the prospect, and the chances of winning are specifically stipulated by the game designer. So if a loss is endured, no one feels like they misunderstood the angle.

On the other hand, when being asked to invest entire life savings in something like cryptocurrency, the situation is perhaps not as well understood. What exactly is cryptocurrency? What would it ever have been used for? Were any companies, anywhere, actually considering adopting it as official? It seems like very few of these questions were answered, even as tens of thousands across the world threw their money into the playing field.

Sadly, with the cryptocurrency boom now over, and many having lost fortunes on a crazy gamble, the question is now being asked; why did this near frenzied boom occur in the first place?

The Frenzy

In England, Nottingham, Pete Roberts is reflecting on having invested $23,000 into various cryptocurrencies. His investment is now worth a disheartening $4,000, and he has declared that he is facing bankruptcy. When asked why it was that he decided to throw in his life savings, Roberts replied simply that he did not want to be left out, and thought he really could make a quick buck.

This is the same explanation heard the world over. Simple fear of missing out, and getting caught up in the seemingly global frenzy was recipe for disaster. Now, with virtually every digital currency having shed roughly 75% of its value since January, the bubble can officially be described as burst. The only real winners are those who had invested prior to the rush, who would have seen at least some gains on initial investments.

But Is It Over?

Back in the 90s the so-called Dot Com frenzy happened, in much the same way as the cryptocurrency boom. Those who knew nothing about the online world threw everything they had into the mix, hoping to walk away with buckets of cash in each hand. Of course that bubble likewise burst, and many walked away empty-handed.

But, as is obvious, the online world matured, expanded, evolved, and is now worth billions. It is being suggested that the cryptocurrency market will behave in the same way, only now entering into its real stages of growth and expansion. But will this be the case, or will the whole thing simply fade away into a bad memory? After all, with so many having experienced ruin in the process, who would still adopt it?

The Future

Once again the pertinent questions should be getting asked. What is cryptocurrency? What is it actually used for? Are any big corporations or syndicates using it, or considering adopting it? In answering these questions, a much clearer idea of the future of these currencies can be seen.

So should those who have invested be selling their stocks now, in hopes of getting at least some of their investment back before it turns into dirt? That is an extremely difficult question to answer objectively. The Dot Com evolution suggests that holding onto the investment is a good idea. But then, can the online world as a whole really be compared to a digital currency? After all, if you had Googled what cryptocurrency can actually be used for, you might have found that you came up with few answers. Or at least, few answers that suggest there is going to be a booming market that takes the world by storm…