Does bubble burst pay real money?

Could you please clarify for me, does the bursting of a bubble in the cryptocurrency market actually result in a loss of real money? I've heard rumors that it's just paper losses, but I'm really curious about the actual financial impact. If a bubble bursts, does that mean investors lose actual cash, or is it more of a temporary drop in the value of their assets? I'd appreciate it if you could provide some insight into this matter.