1 big thing: Cryptocurrency dreams go bust

This was the year that Bitcoin and most other blockchain currencies turned out to be the new tulip — a mania that led otherwise sensible people to suspend their better judgement and become poorer by piling in, Axios future editor Steve Levine and Silicon Valley reporter Kia Kokalitcheva write:

That psychology has now changed decisively: Bitcoin’s price shot up to record prices artificially, only to plummet about 70% this year.

has now changed decisively: Bitcoin’s price shot up to record prices artificially, only to plummet about 70% this year. "[O]f 573 digital coins launched since 2017," according to The Wall Street Journal, "89% are trading at a loss compared with their offering price and worth a total of about $2.1 billion — $8.4 billion less than the $10.5 billion initially invested."

launched since 2017," according to The Wall Street Journal, "89% are trading at a loss compared with their offering price and worth a total of about $2.1 billion — $8.4 billion less than the $10.5 billion initially invested." Similar fads pop up every few years — always accompanied by the phrase, "this time is different," until it ends in tears.

For cryptocurrencies, 2018 was the correction to 2017, which was basically a big free for all. Then, regulators and reality came calling.

Initial coin offerings (ICOs), it turns out, are not a magical and regulation-free fundraising mechanism: A bad white paper does not a viable digital token make.

it turns out, are not a magical and regulation-free fundraising mechanism: A bad white paper does not a viable digital token make. "The SEC and state regulators have brought more than 90 crypto cases over the past two years," but have only managed to claw back about $36 million for duped investors, The Journal reports (subscription).

have brought more than 90 crypto cases over the past two years," but have only managed to claw back about $36 million for duped investors, The Journal reports (subscription). "One of the attractions of digital currency is its anonymity. That ... can also make it hard for investigators to trace funds."

Predictions for next year: more regulatory guidance, and more realistic applications of the tech.