Cryptocurrencies went through a couple phases in terms of who the holders were.
The first group of cryptocurrency holders were tech enthusiasts and criminals.
The value of the coins then were very low compared to what they are today and it was a completely different world. Most people didn’t want to admit they were cryptocurrency holders because of the negative connotations.
Then something happened and cryptocurrencies started to increase in value.
This brought some credibility to the area, making some of the early holders rich and giving them clout.
More people wanted to get in on the cryptocurrency train as they wanted to make some money too!
Some of these people were undiagnosed gambling addicts, some were professional investors, a lot of them were people in or around the tech sphere.
Then the valuations -incredibly- kept going up.
This was it.
Even the skeptics were going in on what seemed to be a very lucrative line of not doing work.
This further spiked the values and helped speculators make a lot of money. When this unsustainable price increase finally came to an end and resulted in a crash, a lot of unsophisticated investors who got burned swore to never ever invest in cryptocurrencies again and went away.
Finally we entered the era where professionals rule the game and it’s a more stable and healthier market.
I advise the people who left -or pondering on joining for the first time- to see it as the tech bubble: true, a bubble has burst, but this doesn’t mean the long term good returns are gone too. The market with its new-found professionalism and health is on its way to potentially pleasantly surprise the investors.
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