The Crypto Crash: What Caused It and What Happens Now?
What caused this sudden crypto winter And what happens now. Welcome to America Uncovered. Im Chris Chappell.. This episode is sponsored by Incogni.. You probably know that companies are collecting your personal data., But you may not realize just how many. Dozens, maybe hundredsmost of which youve never heard of., And you have no idea what theyre doing with your data. Incogni helps. You stop them. Ill, explain more at the end.. So brace yourselves. Crypto winter is coming., While that sounds scary on the bright side at least theres no way this will be as anticlimactic as Game of Thrones winter., Seven seasons of buildup just for the Night King to be one shotted in a single episode. Yes, its been three years., No Im still not over it.. If youve been wondering why your friends who are into cryptocurrency are suddenly going bald from stress its because Cryptocurrencies have lost 2 trillion in value since their peak in November of 2021.. To put that in context. In just over 7 months, the crypto market lost nearly the same amount of money that the US spent over 20 years in Afghanistan. And people are bailing out of crypto just as quickly as the US left. Afghanistan, also without warning, or a well thought out, plan.. The most valuable cryptocurrency Bitcoin peaked above 68 thousand dollars per Bitcoin in November.. Last week, Bitcoin dropped below 20000., Which seemed like a worst case scenario. Until over the weekend, when Bitcoin fell even further.
. There was a sigh of relief, though, as Bitcoin bounced back above 20000. At the start of this week., Which means things are so bleak that people are celebrating going back to what they initially thought was the worst case scenario.. This would be like celebrating when a doctor tells you they were right, the first time they only have to amputate one of your feet. Bitcoin isnt, the only cryptocurrency feeling the pain. TerraUSD and Luna bottomed out, costing investors almost 60 billion.. So many people were panic, selling that major crypto lending firms, Celsius and Babel froze withdrawals on their platforms. Thats like being on a sinking ship and the crew says too many people are bailing out so theyre putting a pause on the lifeboats for a few days.. Although with this being crypto that sinking ship could one day turn into a rocketship and head straight for the moon, So what caused this crypto crash? There are a few factors.. One is the fact that a lot of people invested in crypto during the pandemic when money was pumped into the economy to make it stronger.. But when the economy started to slump, people panicked and started selling off their crypto, causing its value to plummet.. Because when inflation is out of control and every dollar counts, people would rather buy groceries than WhopperCoin. Cant have a digital hamburger coin for lunch., No matter how hard Ive tried. These massive sell offs created a domino effect., The more the value dropped from people selling.
The more confidence in the crypto market eroded, causing more people to want to sell.. This caused a quick massive decline across the entire industry.. In April 2021, Cryptocurrency exchange platform Coinbase went public. At the time it was valued at nearly 100 billion.. Last week, Coinbase was valued at only 11.4 billion and theyre in the process of laying off 18 of their staff.. These layoffs are causing an even bigger hit to crypto confidence, creating a cycle that seems hard to break out of. And sadly theres no Crypto Night King to one shot and end the crypto winter.. So could this be the end of cryptocurrency, as we know it Ill? Tell you what experts are predicting right after the break. Welcome back.. Is this crypto winter, the end of cryptocurrency? As we know it, Some experts predict that and are even hoping for it.. Is this the end or have we hit the bottom? Well, we definitely havent hit the bottom., I kind of hope its the end, or at least the beginning of the end before more people have an opportunity to lose more money in this pyramid scheme.. But you talk about all the value. Thats evaporated its just market value. Theres, no real value in Bitcoin or any of the other cryptocurrencies.. They simply have a price., And as long as people are foolish enough to pay that price youll have market value., Yeah Crypto is just a made up currency. That only has the value people assign to it and isnt as valuable as it used to be.
, Unlike …, a currency issued by the government., While many people think of Bitcoin, as mainly an investment thats, not all it is.. Many people living under dictatorships use crypto transactionally.. Its a way they can receive and spend money without their government being able to control them or see what theyre doing. Governments can block their bank account, but not their crypto account. Its a great tool for dissidents. And honestly dictatorship or not. Do you really want your government to know what youre spending your money on The Ethereum blockchain can also be used to post things online, that cant be taken down., So this is a great tool for posting things that dictators want to censor but cant. Or posting things That youll always regret and wish you could take down.. Despite this, some experts say: crypto is a ponzi scheme and the inevitable end result of excessive gambling. Wait: isnt excessive gambling. Basically, what the stock market is Listening to people make bets on Wall Street sounds just like. Being at the horse, track. GameStop slipping behind and AMC coming up, the rear. Amazon, still the frontrunner., But wait whos that suddenly, in the lead Its Rich Strike, Hes done it Hes won the Fortune 500. Other experts are more hopeful with some even saying this crash is healthy, since it will eliminate people making overly risky crypto purchases in the future.. Well, thats, an optimistic way of looking at things. Thats like seeing someone fall down the side of a mountain and saying This is a good thing With two broken hands: hes less likely to play Russian Roulette Thats, not that crazy of a take though.
. This crypto crash has been likened to the dot com bubble burst in the early 2000s, when investors pumped money into different internet startups, hoping to turn a quick profit. That ultimately led to a loss of 5 trillion for investors and many. If not, most of those companies went out of business. That didnt mark the end of the internet, though. The internets still here., As you can tell from the fact, youre literally watching me on YouTube., Most likely on your phone while sitting on the toilet., You think YouTube. Doesnt watch you back And anyway, this isnt the first time crypto has crashed. In December 2017 Bitcoin plummeted, 30 percent in one day and ultimately lost more than 80 percent of its value.. It stayed pretty low for a couple years. Then it rebounded in a big way. At the end of 2020., Is this latest crash just part of the pattern, Or will it be different this time The managing partner at Dexterity Capital, a major crypto trading firm, said This era of being able to get exceptional yield for nothing is over.. This is when a lot of leverage is going to get pulled out of the system, and this will ultimately make the crypto ecosystem safer., As the Wild West days of crypto come to a close crypto companies will have to earn back trust and confidence in consumers. And At least one consumer, seemingly hasnt lost any confidence, Elon Musk., Who said that, despite the crash hes still buying Dogecoin.
, Which isnt a surprise., Mostly because Musk is also still trying to buy Twitter. So it shows hes not afraid of investing in absolute dumpster, fires. Musks commitment to Dogecoin caused its price to increase by 10.. So I guess people are regaining confidence in it., But what cant be good for the confidence of Dogecoin is the fact that Musk and his companies are being sued for 258 billion for allegedly artificially inflating the price of the cryptocurrency.. So I guess were not out of the wild west days of cryptocurrency, just yet. Maybe were entering a Crypto Wild Winter West., Which sounds like the most volatile West since Kanye., And this episode has been sponsored by Incogni. Wherever you do anything online theres. A huge number of companies that collect your personal data., Your name, your email, your home, address your social security number, your employment, historyall sorts of things.. What are they doing with your data? Theyre? Buying it selling it and trading itlike youre a commodity. Worse, the companies that are holding onto your personal information could get hacked. Like that time. In 2017, when data on nearly 200 million US voters was accidentally leaked by a company contracted by the Republican National Committee.. It exposed peoples, names, birthdates and home addresses. And if a company like that can be hacked so can all those smaller companies that buy and sell your data.. This is why I signed up for Incogni., And I discovered there were 76 data brokers that potentially had my private information.
. I had never heard of most of these companies., But they had definitely heard of me. Incogni forces these companies to delete your data.. There are laws that allow you to do thisbut if you want to do it yourself. Youd have to figure out the applicable laws, write letters in a specific legal way and follow up to make sure your instructions are followed.. Incogni handles this for you. Three months. After signing up, Incogni had already gotten my details removed from 19 of these data brokers with 35 more in progress., And I didnt have to do anything after signing up., So check out Incogni using the link below or go to incogni.comuncovered. The first 100 people to use The code UNCOVERED will get 20 off. Get your personal data off the market with Incogni. Once again, Im Chris Chappell.