This year’s events had a more subdued feel after the 2018 gathering that featured rented Lamborghinis parked outside the conference hall. A guy dressed as a big yellow Bitcoin was swiftly kicked out of the building by security. Still, the bull in the ballroom showed that enthusiasts retained their cult-like devotion.
“I did it to make people happy and think about Bitcoin, to convey my bullishness,” said the Bitcoin Sign Guy, who has kept his identity anonymous after gaining fame for holding up a “Buy Bitcoin” sign in 2017 during one of Janet Yellen’s televised congressional appearances.
Not even a spate of negative news could dampen the recent enthusiasm. The market has shrugged off scandal after scandal, including allegations against Tether, one of the world’s most widely traded digital currencies, which has been accused of covering up losses of about $850 million. Similarly, crypto exchange Binance, one of the largest, recently admitted that hackers stole 7,000 Bitcoin worth about $40 million in a single transaction.
The notion that bad news negatively impacts prices has been turned on its head, said eToro’s Assia. Whereas 2018 was the year of good news and bad prices for crypto, bad news such as exchange hacks don’t seem to matter. “A lot of people are feeling very hopeful,” he said.
But in a sign that the damage done is still deeply felt, the Consensus gathering only attracted about half as many people as in the year prior. About 4,450 faithful attended the conference this year, said Jacob Donnelly, managing director of digital operations at CoinDesk. That compares with 8,800 at last year’s gathering.
“A lot of it is tied to the market. When the bulk of people’s assets is tied to an asset of crypto of some sort, you’re going to have crazy volatility,” Donnelly said. “The negative is that sometimes things are slower because of fluctuations.”
Since Bitcoin’s stunning crash last year, a number of start-ups that kept portions of their funds in digital assets have shuttered their operations. That’s brought about a different crowd and many new entrants to this year’s Consensus gathering, said Montreal-based Jonathan Zeppettini, international operations lead at Decred, a digital currency.
“This year, you have more serious people showing up, who have a more long-term view,” Zeppettini said in an interview. “There are probably some scams still circulating, people trying to raise money. It’s harder than ever probably because people are more critical now.”
To be sure, it was just a few months ago that the space was left for dead as serious investors and speculators alike fled. And the deep wounds left by the 2018 crash are still festering, leaving many worried that the market’s just one regulatory decree away from annihilation.
“It just goes to show cryptocurrency has a very speculative nature still,” said Zeppettini. “There’s still animal spirits involved. The price goes up and people start to think ’Hey, this stuff’s legit again, maybe I should think about a career in blockchain.’ The price goes down and they start to think ’It’s hopeless. I’m going to throw in the towel.”’