A well-known parable tells how the Great Depression began in the United States. A millionaire heard a question from a shoe shiner whether he should buy a few shares, after which an experienced investor immediately realized that the speculative bubble was overheated. And the next morning the exchanges crashed. Hugh Halford-Thompson, one of the pioneers of blockchain technology in general and bitcoin in particular, experienced a kind of déjà vu when he heard a similar question from an ordinary Uber taxi driver in December 2018. What happened next is still fresh in my memory.
According to statistics from Companies House and OpenCorporates, 60% of companies and start-ups that were rushed into the fall of last year to participate in the bitcoin gold rush have now been liquidated. Hundreds of organizations are counted, and it is not possible to count the number of affected people - many still hide that they took part in this. Some are ashamed, others are afraid to answer to creditors, and still others do not want to have anything to do with Bitcoin anymore.
This is not an invention of journalists; throughout 2018, dozens of companies filed documents for renaming in order to exclude the words "bitcoin" and "blockchain" from their names. Many private investors have gone broke, property, family and reputation. Only because they made a large bet on a new technology and invested large funds in bitcoin, when its rate was already inflated to critical heights. People, often far from stock markets and investment technology, have fallen prey to massive financial frenzy - just as they did 90 years ago.
Today, a year later, bitcoin is still alive and even feels pretty good, the rate of the cryptocurrency has stabilized. A kind of self-cleaning of the ecological environment has taken place, which has been abandoned by many speculators, novice investors and casual consumers. Those who did not succumb to temptation and remained calm, in fact, did not lose anything - the current bitcoin rate is even slightly higher than before the bubble started. Bitcoin still accounts for about half of the total cryptocurrency market and can be used for traditional transactions. And humanity has received another good lesson in economics and psychology.