Is FUD real?
Cryptocurrencies and the blockchains they are built on are new technologies. As such, they are still being developed, bugs are being worked out, and real-world use cases are being devised. Sometimes market participants who are betting against crypto’s future will use FUD to stoke fear among investors and encourage selling. But not all FUD is propaganda.
As with all new technologies, crypto as an investment is prone to wild swings in valuation. Through early 2022, the digital currency market was down a substantial amount, along with tech stocks in general. The S&P Cryptocurrency Broad Digital Market Index was down as much as 50% in May 2022. As measured by the original cryptocurrency Bitcoin’s price, other big downturns for this emerging industry occurred in early 2020, 2018, and 2014.