Amateur Investors Still Processing Crypto Crash

Nobody was surprised by the crypto crash, but the losses are still very real for many
By Mike L. Ford,  Newser Staff
Posted Jul 17, 2022 4:30 PM CDT
Grief, Regret, Shame and Other Effects of Crypto Crash

Crypto has gone from craze to crash in the space of two years. Bitcoin, for example, hit nearly $70,000 in November, but it’s been hovering around $20,000 for a month. It could drop more, or maybe it won’t. Guardian reporter Sirin Kale says there remains plenty of optimism for the future of cryptocurrencies, but her story is really about the legions of amateur investors who are still processing both the financial and emotional tolls of the recent plunge. For many, the financial losses are profound, and it's a struggle to deal with the regret of not cashing out earlier. Some are finding new hope and wisdom at this stage in the journey, much like addicts or compulsive gamblers checking into rehab.

There’s no question social media helped fuel the surge, with celebrities and homegrown influencers driving what some observers recognize as cult-like behaviors. Those burned by the crash can now find solace in that same social media environment, such as the lively “Bear Market Screaming Therapy” group on Telegram. Plenty of folks on the sidelines don’t mind saying “I told you so,” including Nicholas Taleb—mathematician and risk analyst of Black Swan fame. He expressed optimism about cryptocurrency back in 2018 but did an about-face last year. Now Taleb's advice to anyone holding crypto is to "ask your grandmother if the idea makes sense. If it doesn’t make sense to her, it doesn’t make sense … get out. Do something productive with your life.” Read Kale’s story here. (More cryptocurrency stories.)

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