Opinion : Crypto - Why and How the Bubble Will Pop
Thread Rating:
  • 1 Vote(s) - 5 Average
  • 1
  • 2
  • 3
  • 4
  • 5
#1
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:

- ICO = IPO

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:

   
Reply
New Reply 


[-]
Quick Reply
Message
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.

Messages In This Thread
Crypto - Why and How the Bubble Will Pop - by Decentralized Investor - 11-12-2017, 09:52 PM
RE: Crypto - Why and How the Bubble Will Pop - by Decentralized Investor - 11-13-2017, 02:24 AM
RE: Crypto - Why and How the Bubble Will Pop - by Decentralized Investor - 11-13-2017, 05:45 AM