The cryptocurrency was tipped to be a revolutionary next phenomenon in the future. The last few years have seen the digital currency going to unprecedented heights in many countries. People who had the guts to invest in it earned millions.
However, things took a U-turn when there was a massive debacle in the digital currency space in May this year. Many people who invested in crypto lost their entire savings. The debacle led to the wiping out of a whopping 200 billion USD worth of wealth within just 24 hours. Although the crypto market has always been volatile, experts were worried that it can never bounce back to the same level before the catastrophe.
Digital currency is a digital payment system, which does not depend on banks for the verification of transactions. This peer-to-peer system can enable any person to receive and send payment anywhere. So, there is no exchange of physical money and everything happens online.
Digital currencies run on Blockchain, which is a distributed public ledger. It has a record of each transaction held and updated by currency holders. There was a wave, which made many investors earn millions. However, the recent crash led to several crypto experts comparing the state with the 2008 Lehman Brothers Crash.
Is there a ray of hope?
JP Morgan, the well-known global investment bank recently came up with an optimistic note on digital currencies. The strategists of the bank mentioned that the recent crypto market correction appears more like capitulation. They sounded positive about seeing the crypto space in general and Bitcoin, in particular, going in an upward direction.