Another big crash (50–80%) is always possible, because it’s a volatile, risk-driven market.
Crypto doesn't carry any intrinsic value like gold.
Cryptocurrency is a set of algorithms and ideas wrapped up in a lot of hope and wishful thinking.
Is it a security? No, absolutely not; it doesn’t represent some other asset (e.g., ownership of a corporation, a debt, etc.). It’s not an asset because it has no intrinsic value to anyone for anything; it’s literally a series of bits in all its forms, unlike a dollar (often represented as bits), which can exist as a bill. It’s not even really a currency; I have never had the opportunity to spend my ether.
So what happened? People realized that they held something of little value and dumped it. If I had bought a significant amount of cryptocurrency, I’d have dumped it long ago; I’m only HODLING because it’s an amount of money I mentally gave up on 18 months ago for this experiment. It’s just like gold; it has crested $2,000 twice in my life, but today is only worth about $1,200 an ounce. However, gold does have intrinsic value; people use it to make jewellery and electronics. Still, lots of people bought at $2,000 and lost fortunes.
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