Opinion : Crypto - Why and How the Bubble Will Pop
Thread Rating:
  • 1 Vote(s) - 5 Average
  • 1
  • 2
  • 3
  • 4
  • 5
y Bitcoin 
Quote:Back in 1999 and 2000 the stock market went crazy about anything related to the internet. These are the parallels to today:


In the late nineties and early 2000s there was an IPO (initial public offering) boom. The Nasdaq was driving new highs every day and new public companies would list there or on any of the “New” or “Tech” market segments established by other stock exchanges. If you took part in the bookbuilding process and bid for stock during the IPO, you were often able to double your money on day one of trading. Everyone was taking part — institutions, high net worth investors and your local retail guy who worked at Walmart or drove a cab. As a matter of fact cab drivers handed out tips of the next hot IPO to their riders. Most IPOs only needed a business idea that was vaguely related to the internet to achieve success.

Today this is very much the same story in ICO world. It appears everyone has taken part in an ICO or a pre-sale of some random token that promises to use the blockchain to deliver your local groceries or some other ridiculous idea that could potentially benefit from a Dapp but certainly does not need a token to work. Some of these ICOs, especially in early 2017 have indeed 10x the money of people who invested, which has fueled the boom. Note that the list of non-scam ICOs (looking at you, Veritaseum and not because you are legit…) that have actually done well for their buyers in Bitcoin terms (not in US Dollar terms) is quite short. The one difference today is that the token, most of which are using the Ethereum blockchain to trade, have absolutely no ownership rights. But that is a point I will come to later. For now, let’s just remember that the ICO mania mirrors the IPO mania nearly two decades ago.

-Anything blockchain soars

In the .com bubble existing technology firms listed on the Nasdaq sometimes decided to add “.com” to their company name and saw their shares surge, sometimes 30–50%.

Well, guess what is happening now… There have already been a handful of companies that simply added “Blockchain” to their company name. Note that this is just a name change in many cases… And of course their value has soared just because of that.

New valuation paradigms are being thought up

Read more at the source (here).

Taking this into consideration, it's important to accept that some incredibly successful businesses survived the dot.com bubble, including Amazon, Ebay, and Priceline. Bubbles tend to form around markets that are on their way to becoming influential and monumental in the ways they change our lives. Blockchain technology is just beginning.

This graphic is always fun to look at, but it may or may not be applicable:

A great read for sure - I actually had this tab open before you posted! Being somewhat engaged with the dot com drama, I noticed small minor events slowly started putting tears in the bubble that eventually led to it bursting. We may be seeing this happen now, such as the Parity fiasco in Ethereum, and the Bitcoin attack by Bitcoin Cash shills - it's hard to say. Sometimes markets are completely unpredictable, and although we like to think we can learn from history - that may not actually be the case.

I personally believe the best way to move forward is to:

- be absolutely certain of your investments, at least to the extent your best capable - know where you're putting your money, know the whitepaper in detail enough that you can brielfy and simply explain it and it's value to a layman
- don't hold a portfolio completely consisting of high-risk speculations (almost all new ICOs)
- buy eth Big Grin Big Grin Big Grin
- average your buy-ins over time!! personally, I try to buy a little bit more each paycheck - call it fomo, but if the bubble pops and we crash down 90% - I'll keep buying into opportunities that are still applicable to the real world, such as ethereum and smart-contracts.
hodling till Im odling
Ethereum, IOTA, Lisk, OmiseGo, Blackmoon Crypto
Totally agree. I too feel that ether is probably the best bet in cryptos, I have a few minor concerns - but overall the community seems very intelligent and understanding of whats happening. It seems they are technology first, price later - where as Bitcoin is price price hype moon omg!

I do still hold some btc/bcc and a few other alt-coins, but am mostly in ETH.
The problem with this article is this .

The stock market itself is over inflated not because of crypto . We are in debt more than is even comprehend able and valuations on companies doesn't seem sustainable . The entire economy could crash any day between now and just a few years from now . When this happens , and when the USD enters a bear market never seen before ...

what will happen to Bitcoin then ?

Personally , I own few stocks mostly small caps miners and highly speculative (XXII / HUSA) - but I mostly own gold, SILVER, and crypto.

A major shift in the entire global market is ahead of us - and crypto is in a very good position to succeed and excel . Be incredibly weary of alt-coins of this happens .. utility tokens or ICOs will become useless during and likely after any recovery .

not gonna happen

cryptos is bringing in the new world
New Reply 

Quick Reply
Type your reply to this message here.

Human Verification
Please tick the checkbox that you see below. This process is used to prevent automated spam bots.