Everyone who is interested in crypto currencies is asking the same question these days: will crypto currency prices rise again? My personal opinion is that the crypto currenccies will start to rise again. Of course, I don't know when the downward trend in prices will end and when the prices will begin to rise.
We look at history when we intend to make a prediction about future events. Have there been any similar incident in the past? How did the incident end? Of course there are people who think that the future can never be predicted. I believe the future can be predicted partially.
Have there been other technologies in the past that created the excitement like block chain in markets? The best examples I can think of are the railways and the internet.
Railway Mania
In the 1840s, there was a railway madness in England. The world's first Intercity Railway Route opened in 1830 between Liverpool and Mancaster. The railway proved to be highly successful for transporting both passengers and freight. The value of current railway company stocks rose rapidly due to falling interest rates. In the following period, many new railway companies were established. Because of the high investment in the sector, almost everyone who invested money in the sector was earning. At the end of 1845, when the British Central Bank raised interest rates, the investment in railroads stopped almost overnight. Many small companies had to stop their jobs because of the funding cut. Many families in the middle class lost a large portion of their family fortune. As a result, the British railways system quickly expanded in a short period of time. A total of 6,220 miles (10,010 km) of railway line were built as a result of projects authorised between 1844 and 1846 – by comparison, the total route mileage of the modern UK railway network is around 11,000 miles (18,000 km).
Painting by A.B.Clayton, Liverpool Mancester Railway Opening, 1830
Dot.com Balloon
Between 1990 and 1997, the number of households used internet in the United States increased from 15% to 35%, and the computer is no longer considered a luxury device. Almost everyone accepted that the economy was dominated by information technologies. Low interest rates and reduced taxes in 1997 created a favorable environment for investing in equities. In such an environment invertors have become willing to invest in all companies that end up with COM. Investment companies that made huge money from Inicial public offerings encouraged their customers who wanted to invest in technology. Rising stock prices also raised expectations for the future. Between 1995 and 2000, the Nasdaq Composite Index increased by 400%. In 1999, S&P 500 equities rose 19.5%, while Nasdaq equities rose 85.6%. Many dot.com companies made big advertising investments to grow fast. It was believed that operational losses would be compensated over time.
