FUD FUD everywhere! Everytime Bitcoin rallies, it brings a whole lot of FUDsters predicting all kinds of scary things. Truth is that we have absolutely no idea what is going to happen and predictions are well...predictions after all. They may or may not come true! We can only prepare for:
An upward swing which ensures profitability and longevity of our investments or
It all goes bust and we rely on our emergency funds that allows us to go on with our lives.
With any kind of investments, this is all that you can do...really!
In recent times, Bitcoin’s unprecedented rally has often been compared to the build-up that lead to the Dot-com crash in early 2000-2001. There were many companies whose stock prices shot up considerably. They got big really fast and then went bust owing to a number of reasons.
It took about 5 years or so for business that gained massive market share to lead up to the peak and crash. The rapid interest in internet companies ultimately led to an implosion and free fall in prices for over 2 years. It proved that IPOs and VC money couldn’t guarantee any couldn’t substitute for lack of solid business model and regular income flow in order to scale. At least that is my understanding of the era.
Chaos precedes all great changes. The dot-com bubble is what led to the modern internet as we know it. There were many companies that made it through these harsh times. Priceline, Amazon, Ebay, Microsoft, Apple, ARM, IBM, Coupons.com, SanDisk, and Oracle are some of the companies that have since become giants with market cap in the billions.
The entire dot-com market cap at the time of the crash was just upwards of $5 trillion. We’re just under $600 billion in crypto-market cap at press time. This isn’t a lot in comparison. It surely feels like it but fact is that $5-8 trillion doesn’t hold the same value today as it was 16-17 years ago. The IT space is far more valuable today than it was when it began.
There’s a lot of real development in the crypto-space from various companies and projects that are pioneering new opportunities to grow this domain and make it scale.
Therefore, I feel that we’re still too early to witness a massive crash in valuations of cryptocurrencies and comparing dot-com bubble to Bitcoin rally isn't fair. On the flipside however, many new entrants into the space are here purely for speculation, especially due to widespread FOMO in the market.
Whether these massive crypto valuations exist or don’t, I certainly feel that blockchain technology and blockchain based applications will thrive in the next few years. Some of our traditional software giants today are starting to adopt and experiment with blockchain technology.
The bottom line is that blockchain technology is still in it's early stages. Mass adoption is many years away and by the time we get to that point, there would've been a lot more development of these new and disruptive technologies.
For now, let's sit tight and enjoy the ride!
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It cannot be a bubble because nothing like Bitcoin has ever happened before in the history of mankind! What a time to be alive!
If you trust the platform and the technology behind it, then these FUD should not affect anymore...Diversifying would be best strategy to handle the uncertain market conditions.
Exact friend, and really its creators are investing in the security of their platform to create trust in their users., No creator would like your platform to be insecure. That world is on the rise and on its way to entering the international markets. That will be the future investments in the world. Regards!
The key is to diversify
I agree with you.
I'm making my own coin it's called porn coin it uses the p2p protocol ;)
Upvoted. Right on man. Fud everywhere. That's why it's important to research research research to determine fud from actual news. Thanks for sharing.
Thanks for the great post. Steemit has enlighten me in many areas of my life. How I wish have join this blog since last year.
Early this year, some people started introducing people to invest in what they call T.B.C. ( The billion coins). Not knowing it was scam.
But ever since I join this site, have read a lot of posts that taught me about Btc, cryptocurrency and other coins, blockchain and blocktrades.
With my little knowledge, no one can predict what bitcoin will say tomorrow. Tomorrow shall tell. So invest with the money you can afford to lose.
I believe Bitcoin is not a bubble; It's in an S-Curve and It's Just Getting Started , Trading and investing in digital assets like bitcoin and ether is highly speculative and comes with many risks. This analysis is for informational purposes and should not be considered investment advice. Statements and financial information on Bitcoin Magazine and BTC Media related sites do not necessarily reflect the opinion of BTC Media and should not be construed as an endorsement or recommendation to buy, sell or hold. Past performance is not necessarily indicative of future results.
Great Blog, I also think it is just getting started, I kick myself now only because i have the opportunity to buy Bitcoin's back in 09-10, I just didn't do my homework and look into it more, now its just a story to tell, I told myself i will not miss this opportunity again, I have been on a Bitcoin binge to seek all the info i can to have a Nice portfolio by end on 2018.
I believe that the only way bitcoin would crash that hard would be if people started to go for more privacy oriented cryptocurrencies, like monero. to go for more privacy oriented cryptocurrencies, like monero.
Nobody knows the future of Bitcoin and other cryptocurrencies. Everyone is predicting their predictions. Technology is developing everyday. Crypto may do well in upcoming days.
Thanks for sharing such an informative article.
Thank you. Nice write-up, cryptohistry info: the level it is write now is the level of nurture.. diff cryto crashes and redeveloped, split etc. We hope for the best as we enjoy the present.
blockchain technology is still in it's early stages, even it is adapted by some banks like access, I don't think this is going to be like Dot-com Bubble
I do feel that there is a bubble building, but the window has been short. I think we'll see some rises, with some corrections, for a few years to come, but as global currency markets destabilizes, cryptocurrencies, which do not have the same vulnerability, will fill a larger share of the market.
This is a good analysis of the market value, and I agree. A true bust in the market is likely years off.
Holaa Steemistas. Really the world of cryptocurrencies is the new economy that will govern the buying and selling of countries around the world. The bitcoin despite having suffered a decline in those last weeks, believe me that this currency is rising and is an excellent investment. The cryptocurrencies are and will be in the future and today a good investment and a safe way of saving. Regards!
Predictions are what they are... Predictions! Crypto is going to stay around for a long, long time. Thanks for sharing your analysis.
THANK YOUUUUI
FUD + Pump & Dump + rebuy for cheap, isn’t that the classic Nathan Rothschild strategy?
It's amazing what you do, 👌 @firepower
The point is we have to be careful in trading, so we do not go bankrupt
Well, I can predict a prediction ;) One of my superpowers! Thx for your oppinion on this.
I want free bitcoin from you.
Just kidding ok
Haha hahahaha
haha! :D
Free bitcoin
I agree with the idea that blockchain technology and blockchain based applications will thrive in the next few years. However, I am curious as to see which technology will really help benefit the social world? I’m thinking steemit might have a fighting chance! 👍
I totally agree with you. The only thing you can do is to set some rules, if you are long term investor just buy any dip and if you are trader you know your risk that you can loose, that’s why you should have rules that work for you. What do you thing?
Great post!
Resteemed and Upvoted!
Thank you very much for the perfect post
Good post bro
There are also huge differences in the structure of the two booms, starting with the more fundamental importance of the Internet as an infrastructure and the money properties of the coins besides their business value. That said, basing one’s investment strategy on past patterns, be it price or behavioral ones, is far from being foolish. Heck, most super-investors and top traders do that for a living and a good one for that matter.
I think there’s might be a little bubble with some ICOs even vitalik buterin said it.
But the crypto market is not a bubble. This will certainly change the world and many many lives. And it’s just starting.
There will projects that fail, but the blockchain technology will succeed.
Thanks for sharing💛👌
Upvote and follow you. I appreciate if you follow me
Well written @firepower. The comparison of time scales between the build up and blow off of the dot com bubble and the crypto price action this year is interesting.
Your conclusions are shared with others. I've heard a few say that it's too early to be thinking of a blow off and that there's still a ride to be enjoyed in 2018. Let's enjoy it then!
Keep up the great work!
I totally think it's an apples to oranges comparison, although equally I think it's the same thing all over again. The nature of crypto and the dot com bubble is that they are both pretty incomparable events. They are points in time (Potentially, in crypto's case, although it's hard to see any other outcome) that will change the way we love our every day lives.
As such you have the strange notion of combining investments with the mainstream, a sure fire recipe for disaster?! As you've pointed out, plenty of companies made it through the dot com bubble, and I'm guessing that the same people who's stop losses triggered huge shifts in the dot com market would kill to get those Microsoft or Apple shares back at the same prices!
Right now I'm just excited to see where this takes us all, and society on the whole!
Two totally different contexts in my opinion. There wasn't really a lot of noise in other sectors during the dot com craze and into the time of the bubble looking back at it now. Today there seems to be so much noise and polarity with cryptos and their role moving forward. People were terrified of the internet almost 25 years ago, with loss of privacy and mainstreaming of information. ROTFLMAO now millions hustle to place every tiny detail of their life having panic attacks when their phone is not working for whatever reason. Industry, education, and virtually every other institution accepted the internet/tech role entering their lives as inevitability. Cryptos still has more of an open verdict still to much of the public, they so uninformed due to countless distractions in their lives of their choosing. Though provoking discussion once again @firepower
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How can it be a Bubble when even more than half of world dont even understand it demand aside .. Secondly even from its earlier days people started it to call a Bubble .. Where is the surprise element of bubble .. Today more people call it a bubble than the ones use it .. if its a bubble it will be first of its kind...
Very helpful post. As a new person this helps me feel more comfortable continuing on. Thank you!
When sitting along for the ride pays off down the road:
Cryptocurrencies crash but tend to recover quite quickly. It's the natural cycle of trading because there will always be profit takers and long term investors.
Bitcoin is doing great. people are still investing in bitcoin.
Once again it is gaining investors attention.
Thank you for the share.
Hi, i am new here, upvote my posts. Thanks
Hello, firepower. I'm very new here can u please help me..
I was working in the thick of the dot-com bubble. I was helping build out corporate intranets back in 1996, and was at Razorfish in 2000, working with BP. Things certainly got out of hand from an investment standpoint, with some companies raising billions with hardly a business plan, let alone any profits in sight.
And yet... the technology went on to transform our world and, as you say, the good companies with strong business models survived, the crap ones went bust, and many, many others came after.
To that extent, what we see in cryptos is similar. I believe we'll see increasing 'irrational exuberance' in the investment in cryptos in coming months, maybe even years, and yes, many coins will disappear eventually, perhaps in a massive market-wide meltdown. And no one wants to get caught in one of those! However, like the Internet, the technology will go on to transform the way we transact, and to potentially open up opportunity for the unbanked, the poor, and those in unregistered homes. Crap coins will go, the strong ones will survive and thrive, and many, many will come along after the initial dust has settled.
Good post!
Totally agree with your title. We are comparing apples and oranges. Here are the difference between the two.
Dot Com Boom
In dot-com era there was full understand what stock buying was. No hurdles or challenges to buy stocks as one easily could open a brokerage account and start trading. In dot-com era people were leveraging their principal to get more stocks. This is known as trading on margin. Margin was some where 4x principal and it was all legal service provided by the brokerage. The dot-com boom was mostly focused in the United States.
Crypto Boom
A lot of hurdles for investors to convert fiat into crypto, but admittedly getting easier. Crypto exchanges are plentiful but which coins they can trade varies from exchange to exchange. All people around the globe can get involved in investing in crypto.
Like you said crypto boom is at its infancy. The potential of reaching $5 - $8 Trillion in total market cap in my humble opinion is not if it will happen but when it will happen. Thanks.
Great post there, keep up good work !
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I have been waiting for someone to breakdown the differences between the two concepts/bubbles because everyone else was going way over my head with it... This was greatly appreciated!!
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Here is a great review of The Raiden Network Token, a great upcoming coin I wrote about here: https://steemit.com/bitcoin/@cryptoknight12/raiden-network-token-review