Cryptocurrency involves various types of losses,
* Market Crashes: Cryptocurrency prices are very volatile. In 2022, when prices were at their peak (in November 2021), the total value of cryptocurrency decreased by over $1.8 trillion. Alone in May 2022, after the collapse of Terra/Luna, there was a loss of over $450 billion, and after the bankruptcy of FTX in November 2022, there was an additional loss of $200 billion.
* Scams and Frauds: There have been many scams associated with cryptocurrency, in which people have lost large amounts of money. For example, in 2023, losses from crypto fraud exceeded $5.6 billion, including a loss of $44 million in India.
* Hacks: There have been several major hacking cases on crypto exchanges and wallets, where hackers have stolen millions of dollars worth of cryptocurrency. In 2022, losses due to crypto hacking amounted to $3.8 billion.
* Bad Investments: Many investors invest in cryptocurrency without complete information and face losses due to market volatility or choosing the wrong coin.
* Lost Funds: Some people lose their wallet's private keys, preventing them from accessing their cryptocurrency, which gets lost forever.
In summary, it is difficult to say how much the total loss has been, but in 2022 alone, the market decline caused a loss of over $1.8 trillion, and billions of dollars are lost every year due to fraud and hacking.
Investing in cryptocurrency is very risky, and there is always a possibility of significant loss.