People sometimes just ride the wave and everything around them might convince them it's the way to go, keep going. But there is a point when the realization that it's unsustainable can creep in. That moment where you go from "infallible" to "hmm... can this keep going?" is when the bubble starts to burst. Panic can spread just as quickly or faster than the euphoria of a quick win.
I think a more likely story is a pump and dump by some large investors.
Surely it's sitting unused somewhere, right?
Here's a compelling and fun to watch lecture that
James Mickens (Harvard SEAS) recently gave about the problems with Blockchain - https://www.youtube.com/watch?v=15RTC22Z2xI