Prices for coins like Bitcoin and Ethereum have plummeted from their all-time highs late last year, and many amateurs are scratching their heads trying to figure out what went wrong.
"I got too caught up in the fear of missing out and trying to make a quick buck," stated Pete Roberts, an investor from Nottingham, England, to CNBC during a recent interview. "The losses have pretty much left me financially ruined."
Like many, Roberts saw the numbers rising dramatically towards the end of 2017 and decided that he'd better join in the party, or else get left behind. He invested $23,000 in a couple of digital tokens, only to see the overall portfolio value drop to about $4,000 since.
That's because most of the leading cryptos have lost the majority of the gains they saw last winter. The overall value of the crypto markets, in fact, has plummeted by an astounding $600 billion since that time, losing about 75 percent of their collective peak values in the process.
While it's a fact that virtual "money" has seen plenty of ups and downs, followed by more ups, this latest downturn could be different. So many amateur investors got involved, and then got burned, that many of them will likely stay away for a very long time – leaving crypto values in the dirt.
"What the average Joe hears is how friends lost fortunes," says Alex Kruger, a former banker who has been actively trading in the cryptocurrency markets for several years now. "Irrational exuberance leads to financial overhang and slows progress."
Those who bought into Bitcoin at its peak are now kicking themselves
This isn't to say that at least some cryptos won't bounce back in time. But the fact remains that many of them won't, and it's important to carefully study where the market is headed before pouring any more cash into the crypto abyss.
Mike Adams has been "bearish" on cryptos for a while, warning that they're backed by nothing and hold no inherent value – making them exceptionally volatile and ripe for total collapse.
Back in December, Adams warned that the dramatic value increases of Bitcoin in particular closely resembled "tulip bulb mania," referring to the once speculative investment craze in Holland involving actual live tulips.
"The people who are buying into Bitcoin right now are nothing more than sheep being led to slaughter," Adams wrote at the time, referring to Bitcoin as a "Ponzi scheme."
"Bitcoin, once started as a really cool innovation for decentralized currency, has now become a purely speculative mania market rooted in 'tulip bulb' delusion," he added, as he warned people to avoid the siren's song of the "get rich quick" fervor that was really taking off at the time.
An episode of The Health Ranger Report, available at Brighteon.com, also warned about the Bitcoin "bubble."
Referring to Bitcoin adopters as "cultists," Adams explains how many Bitcoin advocates were in denial about the coin's likely future plunge, believing that it would eventually reach values in the "millions."
"They cannot see the bubble because they're in the bubble, and they're driven by greed," Adams say. "All the Bitcoin promoters think that they have discovered a perpetual money machine. They literally believe that they have found a magical way ... to create money from nothing." Be sure to watch the full episode below:
You can also keep up with latest Bitcoin news by visiting BitRaped.com.
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