As of August 21, 2018, the cryptocurrency market continued its decline, which has been maintained for seven months with some adjustments and a rate hike. The price of Bitcoin is currently $6,485, Ether is insignificant compared to its previous value and stands at $276, Ripple is worth less than a third of a dollar, and Bitcoin Cash is $526. While the major industry players are thinking about the upcoming trends and making assumptions about the future of the cryptocurrency market, people who had dreamt of quickly making a lot of money in the market with a long bearish trend are losing their investments and are left with nothing.

This happened to the young Englishman Pete Roberts, who, during the Bitcoin boom in December 2017, took a chance and invested all his savings in several tokens. Now, a few months later, the $23,000 invested turned into $4,000 and, most likely, given the downtrend, if they are not converted into fiat money, they will hit the financial bottom. "I was too afraid to lose money, I tried to make money quickly," says the inexperienced investor.

According to CoinMarketCap, the value of all significant digital coins fell by about $600 billion, or 75 percent, since the peak in January. Similar ups and downs have already occurred in the history of the cryptocurrency market. For example, from 2014 to 2015, the rate of some cryptocurrencies collapsed and continued to maintain low positions. Only after some time, the market recovered again, and in 2017, Bitcoin reached its maximum cost of almost $20,000. Such regular volatility seriously affects the adoption of the technology. The average cryptocurrency investors statistically communicate with fiat traders, discuss the rates of Bitcoins and other currencies among themselves, see the decline in their digital assets, are disappointed, and then leave the industry, thinking that the financial collapse of the cryptocurrency market is already nigh, according to former banker Alex Kruger.

"Usually, some guy who invested in the cryptocurrency market hears that his friends lost their fortune because of it. The irrational exuberance of coins leads to financial stagnation and slows down the progress," says Kruger, who, despite the forecasts, began to purchase digital assets.

In fact, it is impossible to name the number of investors that are now in the red. It is obvious that those who entered the market at the moment of the hype and invested big money there are losing at the moment more than people who started investing before the peak of popularity. Despite this, according to the American Coinbase exchange, people are becoming more interested in digital assets and are taking advantage of the moment when the entry threshold due to the declining rate became smaller. For example, the above-mentioned exchanger doubled the number of its users during the period from October 2017 to March 2018.

According to analysts, most likely, the damage will be felt most in South Korea or Japan, where people are actively adopting new technologies and are trying them out themselves. To create an atmosphere of "real sales," the South Korean exchange Coinone opened an office for those who do not trust online trading. This structure of the exchange was usually in demand among the more adult population, but last week, it happened that within a few hours, only one client came to visit. "Prices for cryptocurrencies have fallen so much that people are completely upset," states Coinone.

Kim Hyon-jeong, a 45-year-old teacher from Seoul, invested about 100 million won, or $90,000, in the cryptocurrency market last fall. The money was taken from her savings and on credit ($25,000). At the moment, her investments have fallen by 90 percent. "I thought that cryptocurrency will be the only breakthrough for ordinary people, that my family and I will be able to avoid difficulties and live more comfortably, but everything turned out to be the opposite."

Now, in South Korea, a new group of researchers of the Blockchain Law Society, which will include judges, legislators, and industry experts will be engaged in the discussion of legal issues related to the blockchain. The initial topics were identified in the form of abstracts using technology in the field of accounting and taxation, as well as legal issues related to the use of intellectual contracts, and the study of legislation and regulatory framework for novice users. Probably, these specialists will help all those who wish to understand the system so that they do not repeat their errors.

Most of all, claims and complaints are caused by the collection of funds for ICOs. After the team at Mastercoin appealed to the Bitcoin community for voluntary contributions for the development of the project and received 5,000 BTC, the scammers realized that such a scheme is a great way of stealing money. Now, in fact, more than 90 percent of ICO projects on the market are scams, that is, they are fraudulent. Examples of people investing the last of their last savings and praying for profit are aplenty. A former employee of one large bank, Muscovite Alexei sold his two-room apartment in a residential area in the east of the capital and invested almost all of the proceeds in the amount of five million rubles, or about $7,000, in scam ICOs and lost almost everything.

"My friend, who was interested in cryptocurrencies persuaded me to invest in digital assets. After the first week, the income increased twofold, so I decided to play big. I sold everything, resigned from work, and now I blame myself for it. I still believe in the technology, but I do not have a friend anymore. I still feel the shame," Alexei said in a commentary for DeCenter and asked not to disclose his real name.

With the declining rate of many cryptocurrencies, even stablecoins, there are negative thoughts and hidden assumptions in the society that the technology is likely to collapse soon and cease to exist. In addition, the system is not used universally and cannot replace the traditional economy, as pointed out by the owner of a small business in the U.S., Charles Herman, who entered the crypto exchange market in September last year: "We saw that Bitcoin was not ready for mass daily use."

Despite this pessimism, social networks that discuss all relevant information are full of hodlers, people who store their coins in the hope that they will recover as soon as technology has time to catch up with its advertising. The chairman of the advisory council of CoinDesk, senior adviser of blockchain research in the Digital Initiative of MIT, Michael Casey decided to expose all the myths and conjectures about the impending collapse of the system. He said that the alleged "crypto crisis" is a natural state for open-source technology that attracts a diverse, global community without leaders and explores the idea that promises to reorganize the structure of our economy.

"For those of us who have been following the cryptocurrency market for five years or more, a natural reply would be: "Has the industry not been in a crisis once?" The crypto community should take advantage of this downturn, forget about price fluctuations, and instead, divert the world at the right discussions about the potential of blockchain," Casey said and added that Segregated Witness (Segwit) and Lightning Network technologies were developed at the time that the growth of the Bitcoin price ceased. It was at this critical moment that programmers began to look for improvements for the system, and the ERC20 Ethereum standard token paved the way for the ICO boom of 2016 to 2017.

Michael Casey did not mention upgrading the system just like that. On August 20, the research firm Gartner reported in its latest report that interest in blockchain is weakening. In addition to blockchain, the study talked about four other technologies that are on the verge of a phase of "failure and disappointment" in the current realities.

"The desire to use blockchain is weakening since experiments cannot be realized at 100 percent. Producers fail. Investments continue only if surviving suppliers improve their products to meet the interests of early investors. Therefore, digitalized ecosystem technologies are rapidly moving towards a hype cycle," explained Gartner vice president of research, Mike Walker.

Although recently, representatives of the classical financial industry, such as the World Bank and the Commonwealth Bank of Australia, CommBank, have entered into a partnership to issue blockchain bonds. "This pioneering bond is a milestone in our efforts to learn how we can advise our client countries on the opportunities and risk that disruptive technologies offer as we strive to achieve the Sustainable Development Goals," as commented on the news by IT director of the World Bank Denis Robitaille. Currently, several large financial institutions, including JP Morgan, the Agricultural Bank of China, and the BBVA have already tested systems based on blockchain for the issuance of bonds and loans. And this means that the technology is gradually entering the production processes of the world's financial leaders. Thanks to the tight implementation of the technology, the crypto exchange rate is stabilized, and after that, even the most inexperienced crypto players will cease to lose their investments, and, with diligent calculations and attentiveness, will be able to regularly receive income and lose only small amounts.

While users are pursuing "money, money, and more money" paying attention only to rates and not following the technology itself, crypto exchange players are losing thousands of dollars. Financial analyst from Los Angeles, Tony Yoo, invested more than $100,000, but now, his figures have fallen by 70 percent from their original cost. The young man still remains an advocate of the idea, however, and believes that these tokens will still grow in value and advance in their development. After all, many teams of engineers who have collected money last year with the help of ICOs are still working on the promised products. "There is much more behind this new wave of technology and innovation than we see now, and I am sure that soon, blockchain will enter our society," Yoo said.

Therefore, it is best to study the technology, its functioning and ways to improve, analyze the market, and prudently distribute its financial resources. "Less Lambos, more education," says Michael Casey, and hints that the big rash spending in the current state of affairs will not yield profits in the future.