Cryptos are infamous on account of their volatility. Such warnings do not deter the diehard fans. In fact, they are temped to invest more in such assets. The period between 2018 and mid-2020 when cryptos took a price beating is called crypto winter.

How long will this winter last? It is so cold and harsh. Many coins have taken a beating of 90 per cent. Bitcoin has not fared as poorly as others did. Still it has lost more than 50 per cent of the value.

Most sensible people agree that the underlying blockchain technology has great potential. Many venture capitalists believe in it. There are investments in Web 3.0 and NFTs have enriched many . However, these assets have taken a beating in the last few months.

There was dot.com bubble that lasted between 2000 and 2002, and then burst. Many venture capitalists put in money in crypto in 2021. The returns are dismal. There are no cash flows and there are no earnings. Its valuation is based on underlying confidence. There are no fundamental underpinnings for crypto assets, and thus they take the hardest hit. Thus they are so risky.

In previous such beatings, people waited for the rebound. They do hope so for the blockchain technology in general. Despite the winter, cryptos may have another bullish market. This confidence wavers for a while, but then is regenerated. It could be that a new technology can be seen on the horizon, instead of Web 3.0 and NFTs. Even dot.com survivors later became spectacular winners such as Amazon, Facebook and Google. Capital market is a melting pot. It rewards good ideas, and punishes the bad ones.