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The Crypto Market Is Melting Down: Here’s What Every Investor Should Know
Cryptocurrency is controversial, risky, wildly volatile — and that’s especially evident from Thursday’s crash , when the crypto market plummeted more than $200 billion, spurred on by the collapse of the massive stablecoin TerraUSD (UST) . And this week’s drama didn’t come out of nowhere: The crypto market has trended downward since hitting an all-time high last November due to broader economic woes .
Highs and lows are nothing new in the crypto markets, and skeptics have been long characterizing crypto as an empty bubble destined to burst. Critics have called bitcoin , stablecoins and NFTs simply a new, digital form of an old con primed to swindle and scam . But investors see the world of digital coinage as a step forward — a kind of “Money 2.0” that’ll democratize finance and power the metaverse .
In simple terms, cryptocurrency is a digital token ownership of which is recorded on a blockchain, a distributed software ledger that no one controls — this is designed to make it more secure, in theory. Bitcoin and ethereum are the two most widely known flavors of crypto, but more than 18,000 tokens are traded under different names ( dogecoin is one famous example).
Despite seesawing […]