What’s Next for Bitcoin?

Last year, Bitcoin led a motley pack of so-called cryptocurrencies in one of the great booms in market history, soaring over 2,000 percent to its peak. Since then, it’s led an epic bust that rivals the dot-com era stock market collapse. But there are still plenty of true believers. And as the dust settles, investors and regulators find themselves still grappling with questions first raised when Bitcoin broke into public consciousness five years ago: What exactly is it? How do imitators like Ethereum, Ripple’s XRP and Bitcoin Cash work? Should I buy it? Where do cryptocurrencies fit into the future of money? Here’s a guide for those feeling at sea in these turbulent digital waters.

The total market value of all traded cryptocurrencies exploded late last year to peak at about $800 billion in January by one count. Four months later, though, the value of crypto-assets had plunged by about two-thirds, as regulators began to crack down and fear of big losses began to replace fear of missing out. By late June, Bitcoin had fallen by 70 percent -- close to the 78 percent fall of the Nasdaq Composite Index’s drop when the dot-com bubble burst -- while the worth of hundreds of other virtual coins fell close to zero. Even so, the total market value of traded cryptocurrencies still rested above $250 billion, many multiples of what it was a few years ago.