The market for cryptocurrencies has suffered this last year greatly.
Core Scientific, one of the largest publicly traded crypto mining companies in the United States, which primarily mints bitcoin, filed for bankruptcy on December 21, citing dropped crypto prices and rising energy costs. It was the latest blow to the cryptocurrency space, which has been taking a beating recently.
And the fall of FTX, a crypto trading platform that has since filed for bankruptcy and had a previous valuation of $32 billion, has shattered investors’ trust as the company’s collapse continues to spread across the cryptocurrency industry.
James Royal, the main writer at Bankrate, told CNBC Make It that more and more people in the United States are concluding that bitcoin is nothing more than a speculative bubble. As a result, con artists have taken over the market.
About 60% of American adults think it’s risky to invest in digital currency, according to the latest CNBC Make It: Your Money study, which was done in cooperation with Momentive. This number was up from forty-five percent in 2021. Another 26% of people have the opinion that it is rather risky.
According to the CNBC All-America Economic Survey, as of November 2022, only eight percent of American adults have a favorable impression of cryptocurrencies.
The cryptocurrency market as a whole has experienced a loss of well over $2 trillion in 2022, and the value of popular digital assets like bitcoin is now significantly lower than in 2021.
Royal strongly advises against making any investments in cryptocurrency.
According to Royal, the likelihood of more price declines increases when traders and crypto firms understand that they don’t have an infinite stream of marks eager to prop up cryptocurrency values.
The price of cryptocurrency is notoriously uncertain and vulnerable to erratic price swings due to its status as a highly volatile asset. Because of this, most financial experts would tell you not to spend more money in cryptocurrency than you are willing to lose if your investment potentially goes south.