A bubble always bursts...
From 1997 to 2001, a period of extreme growth in the usage and adaptation of the Internet by businesses and consumers, caused a bubble on the markets, and when i see cryptocurrency booming as it is at the moment, i cant help but see the pattern emerging looks a lot like it did back in the days before the bubble finally bursted. Many new companies were formed and paid-for, but failed eventually. This graph shows you exactly what happend between 2000-2002 :
Is this good or bad news ?
A crash is never easy, literally billions in profit can disappear overnight, and a lot of people, will loose a lot of money. but when you look back at the dot.com bubble, you can clearly see that really all it did was eliminate the losers, and the projects that really were funded on the back of dreams, that were never going to work in reality. The madness in the run-up to the eventual crash, created such a cashflow that even the most un-realistic buisnessplans were approved and funded.
Can we see that happening today ?
Although i believe Bitcoin and crypto are here to stay, i do see the dot.com bubble happening again. There are of course differences, but there are also a lot of parallels. Today, there are more than 500 different cryptocurrencies, and almost anyone can see that most of them will not last forever. The big ones, lets call them the top-10 cryptos will survive any crash, but could easily loose around 80% of their worth, when most of the others will completely disapear, just like many of the newly formed companies during the dot.com bubble.
Great news
When the dot.com bubble bursted, people were panicking and they thought the internet was as good as dead, while in fact, this was just the internet cleaning up the rotten-apples of that day. And for that the internet thrived, just like crypto will.
So, i think we should prepare for this somewhere in the coming years, but if you invested well, and the currencies that you hold have survived, then they are really going to take-off. Mass-adoption has by then allready happend, and after this correction, the only way is up, just like with the internet-companies that survived the bubble-crash.
As conclusion : The new digital money is here to stay, but prepare for a bumpy ride, it will go up, and it will come down, and go up again. ;)
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