Imaginary "currency" that has no intrinsic value, is wildly manipulated, speculated like crazy, that uses more electricity than many nations, turns out to be a bad idea. Shocker, right? But that's what is going on in the cryptocurrency world right now. And it's not just Bitcoin either.
For nearly a month, the bottom has fallen out from under the imaginary coins floating around. Bitcoin alone has lost over $2 TRILLION in value since Nov 2021. Being the biggest player in the space, of course, this brought down the value of every other "coin". It's losses for everyone who's involved. Corrie Driebusch at WSJ has more.
At times, crypto has looked like a combination of Beanie Babies, dot-com stocks and the Velvet Underground: It is manic, it is money, and all the cool people are into it. It has also shared characteristics with other bubbles throughout history, marked by speculation bordering on delusion, disregard and disrespect for risk, and greed.WSJ
Now, with markets sliding and inflation plaguing the global economy, cryptocurrencies have been among the first assets sold. Since bitcoin hit an all-time high in November, roughly $2 trillion of cryptocurrency value—more than two-thirds of all the crypto that existed—has been erased. Bitcoin itself has plunged to $21,206, roughly 69% off its all-time high of $67,802.30. Crypto exchanges are bleeding users, crypto companies are laying off workers with at least one contemplating restructuring.
The scary part to all of this is even if you know the risk and are willing to possibly set your money on fire, you may not be able to actually withdraw your funds. Reports are surfacing here and here of two companies freezing trading or withdrawals of funds. People who have been promoting crypto have gone silent.
All of this is to say, yeah, crypto is super risky, unregulated, and a terrible way to 'invest'.