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The cryptocurrency world is experiencing an identity crisis. While Bitcoin recently surged past $100,000, a growing chorus of investors is questioning whether the broader crypto market has fundamentally broken—and whether the altcoin boom days are gone for good.

The debate exploded on Reddit’s r/CryptoCurrency forum when one user made a stark declaration: “Crypto died in 2021 and we have been trading the corpse ever since.” The post, which garnered hundreds of responses, has crystallized a growing sentiment that the cryptocurrency landscape has permanently shifted from opportunity to exploitation.

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The original poster argues that cryptocurrency has transformed from a revolutionary financial movement into a sophisticated extraction machine benefiting primarily venture capitalists and exchange founders.

“The belief system that made this industry work has completely collapsed,” the OP wrote, pointing to what they see as the end of genuine innovation and community-driven projects. Unlike the optimistic days of 2017, when new blockchain projects sparked authentic excitement, today’s launches are viewed through a more cynical lens.

The numbers appear to support some of these concerns. Where platforms like OpenSea extracted billions during the 2021 NFT boom, current market participants describe “fighting over scraps.” The promised altcoin season following Bitcoin’s historic $100,000 breakthrough never materialized as expected.

One frustrated investor echoed this sentiment: “Alt season never really came back. Everything is either a scam or rug pull. 99% of tokens don’t have any use case.”

A key factor in this shift appears to be the rise of memecoins and quick-flip tokens, which critics argue have drained retail investor capital from more substantial projects. Instead of money flowing into innovative blockchain technologies, investors are chasing increasingly speculative bets on coins with names like “Fartcoin.”

“Memecoins/scam coins drained all liquidity from normies,” explained one community member. “No alt season anymore, this bull market is different compared to previous [cycles], most alt coins are dying off, and most money is going into BTC instead.”

This dynamic has created what some see as a fundamental barrier to new market entrants. “Anyone who would have bought into crypto already has and lost all their money,” the original poster argued, suggesting the pool of potential new investors has been effectively exhausted.

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Interestingly, even the most pessimistic voices in the discussion largely exempted Bitcoin from their criticism. While declaring altcoins permanently impaired, many acknowledged Bitcoin’s unique position as digital gold and its continued institutional adoption.

“BTC has an actual use case; getting money where the financial institutions can’t. Also instantaneous money transfer. And of course no chargebacks,” wrote one defender.

Bitcoin maximalists seized on the discussion to reinforce their long-held belief that most cryptocurrencies are unnecessary distractions from Bitcoin’s core value proposition. “If you don’t understand / make a distinction between ‘crypto’ shitcoins and Bitcoin, there’s nothing we can do to help you,” one wrote.

Not everyone accepts the doom-and-gloom narrative. A significant portion of the community pushed back with data-driven optimism, pointing to recent institutional adoption and regulatory clarity as signs that crypto’s biggest growth phase may still lie ahead.

“Big money has not even legally been able to buy BTC,” argued one respondent. “Banks, countries, corporations, wealth or pension funds, etc were not able to buy (market caps were too risky and laws were not there). Laws are changing in front of us now.”

These optimists point to impressive returns even during supposedly “dead” periods. Bitcoin holders who bought during 2021’s lows at $29,000-$46,000 are sitting on 200%-300% gains today. Ethereum buyers at $900 and Solana investors at $10 have seen substantial returns despite the broader market malaise.

Perhaps most tellingly, some community members argued that focusing on price action misses the point entirely. Blockchain development continues regardless of token values, with new financial products and technological innovations emerging constantly.

“The tech. doesn’t. care. about. price,” one developer noted. “We build again and again, better products, better financial assets… a ton of projects right now in the works.”

This perspective suggests that while the speculative mania of 2021 may indeed be over, the underlying technological revolution continues to advance—potentially setting the stage for more sustainable growth.

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The heated debate reveals a market in transition, caught between speculative excess and technological maturation. For investors, several key takeaways emerge:

For Risk-Averse Investors: The consensus seems to favor Bitcoin as the most defensible cryptocurrency investment, with its institutional adoption and finite supply providing clearer investment thesis than most alternatives.

For Altcoin Speculators: The days of easy 100x returns on random tokens appear largely over. Success now requires significantly more capital, research, and timing than in previous cycles.

For Long-Term Believers: Those focused on blockchain technology rather than quick profits may find current conditions ideal for building positions in fundamentally sound projects at reduced valuations.

Whether crypto “died” in 2021 or is simply maturing depends largely on one’s definition of success. If success means retail investors easily multiplying small investments into life-changing wealth, then the current environment does appear more challenging.

However, if success means building sustainable, regulation-compliant financial infrastructure that can serve institutional and retail users alike, then the current “boring” phase might represent necessary growing pains rather than death throes.

The Japanese stock market comparison raised by the original poster is particularly sobering—Japan’s Nikkei index took over 30 years to return to its 1989 highs despite continued economic growth and monetary expansion.

As one community member noted: “When BTC was 1k, people were saying what you’re saying, when it hit 20k people were saying what you’re saying.” Whether this pattern continues or breaks may determine whether crypto’s critics or champions prove correct in the long run.

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This article We’re Fighting Over Scraps Now’: How Memecoins and VC Money Killed the Crypto Dream That Made Early Investors Rich originally appeared on Benzinga.com