As Cryptocurrencies plummeted to new depths on September 12, the MVIS CryptoCompare Digital Assets 10 Index expanded its cave-in from the January 2018 high to 80 percent. The fall has now exceeded the Nasdaq Composite Index's 78 percent peak-to-trough tumble after the dot-com bubble burst in the year 2000.
Just like their forerunner during the Internet stock boom nearly twenty years ago, several crypto investors that bet big on an apparently revolutionary tech are facing a doleful reality check.
Crypto to Transform the World
The cryptocurrency fanaticism of last year motivated by expectations that Bitcoin would turn out to be "digital gold" and also that Blockchain-powered virtual tokens would remould industries from finance to food has easily generated concerns about immoderate propaganda, market manipulation, security defects, tougher regulation and more sluggish-than-expected adoption by Wall Street.
Cryptocurrency maniacs dispel negative and pessimistic comparisons to the dot-com era by looking at the Nasdaq's significant recovery to new highs one and a half decades later, and to the Internet's weighty impact on society. They further indicate that Bitcoin has recovered from past breakdown of similar size.
Even if the optimists are right and Cryptos finally transform the globe, the 2018 selloff has emphasized that progress is unlikely to be sophisticated.