Is blockchain creating the new dot-com boom?
The blockchain phenomenon has companies in a tizzy in a similar way to the dot-com boom. There is an irrational exuberance around blockchain technology and its seemingly untapped future of possibilities.
The dotcom boom was fuelled by excitement surrounding the new technology of the Web. All of a sudden internet-tech companies were at the forefront of the market. In a similar fashion, companies utilising blockchain are being considered the new golden standard. Just adding “blockchain” to a company name has seen some stock prices rise 500%! Blockchain has become known widely for its flexibility to cover communication, security, transparency and storage in nearly any industry, lending tremendously to its popularity.
Unfortunately if the dot-com boom taught us anything, it is that with such rapid growth in a short time, a decline of some sort is fairly inevitable, and so the big question is not when it will happen, but what innovations will survive and thrive this new tech-boom.
What we can learn from the companies who thrived from the dot-com boom?
By 2004, more than half of the Internet companies created since 1995 no longer existed, with trillions of dollars in market value wiped out. There is little doubt that the Internet has greatly changed the world. However, those who suffered at the hands of the subsequent dot-com crash, did so because their investors and owners focussed primarily on the number of people looking at their company, letting basic business fundamentals go by the wayside. With some uncanny similarities between the current and dot-com boom, it is worth examining the winners of the past to learn from their survival.
Amazon, also often dubbed “the everything store” is one of the biggest winners of the dot-com boom. The company survived by diversifying and sticking with their vision, simply fine-tuning details through data analysis. Realising that the needs of users expanded across a range of items, Amazon went from only selling books, to nearly anything you can think of. This ensured that it was a one-stop-shop for consumers, with data analysis helping Amazon fine-tune where to enhance their platform to benefit consumers.
Netflix cornered a market, adapting to consumer demands. They shifted fairly early from renting per movie to a subscription based system, which saw consumers able to better satisfy their movie and tv cravings.
Ebay worked similarly, adapting itself to the evolving interests of its consumers. The company adopted fixed-price listings in addition to its auction style posts, allowing consumers to feel more comfortable with a familiar type of sale.
Who will survive the blockchain boom?
While the dot-com boom has its differences to the current blockchain boom, the similarities suggest that we can learn from the companies that thrived from the dotcom boom and apply similar strategies.
Examining Amazon, Netflix and Ebay it can be concluded that three of the biggest points that helped with their ongoing success are:
Platforms like PLAAK who implement these points are positioned for success.
Ignore the irrational exuberance and stick to your vision :
PLAAK has remained steadfast in its vision despite both market volatility and criticism of their ambition. There have been suggestions that PLAAK needs to boost its marketing profile, however learning from companies who collapsed after the dot-com boom, PLAAK has opted for a very organic marketing strategy without succumbing to the mistake of excessive expenditure. The team have focussed on delivering their product, updating consumers on progress without forcing unnecessary hype, already plentiful in the crypto market. They have not forgotten the fundamentals of putting their money where their mouth is, keeping their heads down and working on their platform to ensure that their product will live up to what they say it will do.
Make sure the vision addresses needs that won’t go away :
PLAAK’s ecosystem addresses the desperate need for consumers to be made a priority, as well as threaten the monopoly of bigger companies. PLAAK is diverse, covering the banking, financial and service industry. The ecosystem facilitates the execution of necessary services and transactions in a faster, cheaper and more efficient way. In one ecosystem PLAAK helps its consumers buy, sell and grow digital assets, purchase services in a safe and low-cost environment as well as keep medical data secure and easily accessible.
Always evolve and keep the interest of consumers first :
PLAAK tirelessly maintains focus on consumers. Everything is about the consumer and making PLAAK’s ecosystem the best it can be for them. PLAAK does not back down from criticism, but rather takes on board what consumers say to adapt their idea. The products on the platform are also an accumulation of applications that research indicate consumers want, lowering fees and bringing together the best features in one place.
Whilst these are not the only indicators for success, the past dot-com boom suggests that platforms such as PLAAK have an increased likelihood for long-term success and are poised to dominate the market.
