For the world economy, the year 2020 is the pivot point. It changed every narrative and every preconceived notion of the dollar and cryptocurrency. The role of crypto has reversed. Crypto would take a lot more time to become a global standard.
One of the main ideas behind the creation of Bitcoin was that it would replace the fiat currency. While crypto was something that the world had never seen before, in the short run, the idea was great, but in the long run, the idea did not sustain mass greed.
I would like to add some main events that happened in the crypto world. Knowing these things, you could understand the gist of the situation and create your understanding of where we are heading.I want to add some main events that happened in the crypto world. Knowing these things, you could understand the gist of the situation and create your understanding of where we are heading.
100s of billion was injected into the market.
The bull of 2020 was such that the world had never seen before. Any coin you pick up would blow ten times more in a month. Elon Musk caused this mass euphoria.
However, many things led to this event. People have yet to catch the bitcoin train since 2011. It is a buildup of an inner dream that one day you could be a millionaire, which drove the whole fiasco of 2020.
Before 2020, everyone supported the narrative that the absence of a regulator in a crypto bubble was a good thing. This narrative worked against the crypto world, and people started to fall for the scam.
Many people got “rug-pulled.” What users thought prior remained a false narrative; anyone can build any coin and create fraud through social media, where telegram played a vital role.
The older adults in the crypto world who had invested in 2011 started to realize the need for a regulator. This realization created a big gap between the new and old users.
The “Rugpull” culture started in 2020: BSC coins.
However, it started in 2018 –– the rug-pull through crypto scams became rampant in 2020. It all started through BSC coins. The BSC coin is a Binance Smart chain coin. This coin is a type of crypto a user can make inside the Binance Smart chain using BNB as fuel.
The BSC coin is a copy of the Ethereum smart contract. When Bitcoin was well-liked and popular, Vitalik Buterin developed a new cryptocurrency called Ethereum.
Ethereum was different from Bitcoin because Bitcoin was a single coin. Ethereum was like a computer program where a user could build another currency inside Ethereum, and every coin transaction would use Eth as fuel.
Since the value of Ethereum was above thousand dollars in 2020, the Smart Contract coin made in the Ethereum bubble would need Eth as fuel, so it became expensive for the mass population to buy the Eth coin.
The first coin that started a rug pull culture was the HOGE coin. Lots of people earned money; what Bitcoin did in 10 years, this coin did in a month. And when the price started to drop, people lost billions.
Then came the Binance Smart Chain Rugpull.
Coins like Bunny were already in the market, and the SAFEMOON happened. The Elongate fiasco followed SAFEMOON. The thing about the popularity of the BSC coin was that it was cheap.
The value of BNB was only 200 dollars then, which peaked at 700 dollars. Many users could buy Binance Smart chain coins that used cheap BNB as fuel for every transaction. The rug-pull was so imminent that many users could search for the following new coin, hold for a week, make millions, and finally dump it on the market.
Many developers ran away, making millions. One such case was the coin called Spacedoge. There is another story about the coins like Holo and Chiliz (CHZ).
The rise of the Dogecoin
As I said earlier, people felt guilt when they missed the bitcoin train. And when the world richest man advertised Dogecoin on Twitter, many people jumped into the Doge hype.
The 0.003$ coin shot to 0.7$ within five months. They were hundreds of billions of dollars poured into this Doge economy. This coin was the pivot point that started the rug-pull culture in 2020.
Finally, when Dogecoin dropped, a bear market started in the world’s economy. Even stocks suffered. The spark of GME was a “FOMO” experience from Dogecoin.
Bear market 2022
Bear market 2022 is the result of the year 2020. Bitcoin gave birth to the idea that everyone could become a millionaire, which was true in the case of early Bitcoin holders.
Coins like XRP hit their top in 2017 Bullrun and have remained quiet for another five years. All the meme coins took away billions in losses. The year 2020 changed everything.
The dreams of many people have become dreams again. They say you don’t lose if you don’t sell, but you don’t gain if you don’t sell. The whole world is waiting for the next bull run, which could take years. For now, it’s like the Stone Age with no new inventions or innovations. Now we are treading on a new path.