Some Say Crypto Bubble. Others Say Remember

In 1998, the dot com bubble burst and sent shockwaves through the global economy. Many people heard the cries from Chicken Little yelling, “The sky is falling,” and panicked, selling off their holdings. While others held on to companies like Microsoft, Qualcomm, and Apple as they survived and thrived. Could the same thing happen with cryptocurrencies?

The recent devaluation of the cryptocurrency market has led many to believe that a bubble has formed.

However, it’s important to remember that after the dot com bubble burst of 1998, many major corporations like Microsoft, Qualcomm, and Apple endured and continued to grow. There’s substantial evidence to believe that the same potential lies within cryptocurrencies.

Cryptocurrencies have the potential to grow like major corporations when they were in their infancy. The dominant platforms like Bitcoin and Ethereum may have growth potential similar to Apple, and Microsoft, when they were in their infancy. Cryptocurrencies may be at bargain prices now, making them affordable for investors.

What’s important to remember is those patient investment strategies paid off for those who held on to companies like Microsoft, Qualcomm, and Apple after the dot com bubble burst. The same could happen with cryptocurrencies. So don’t panic, and consider investing in cryptocurrencies for the long haul.

The Dot Com Bubble was caused by a number of factors,

including over-inflated stock prices, excessive venture capital investment, and the burst of the “new economy” bubble. These factors led to a decrease in demand for dot com stocks, which caused their prices to plummet. This, in turn, led to widespread panic and a decrease in confidence in the dot com industry.

There are a number of lessons we can learn from the Dot Com Bubble, including the importance of diversification, patience, and not putting all your eggs in one basket. By diversifying your portfolio and investing in a variety of industries, you can protect yourself from the effects of a bubble bursting. Additionally, it’s important to be patient when investing, and not to sell off your holdings at the first sign of trouble.

The cryptocurrency market is now in an extremely similar situation to the early pioneers of the internet of things.

The possibility of dominant cryptos having the same result as the dot com stocks is present. Cryptocurrencies have the potential to grow like major corporations when they were in their infancy. The dominant platforms like Bitcoin and Ethereum may have growth potential similar to Apple, and Microsoft, when they were pioneering our technology of today. Cryptocurrencies may be at bargain prices now, making them affordable for investors. So don’t panic, and consider investing in cryptocurrencies for the long haul.

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While many start up internet companies went out of business after the bubble burst, some major corporations survived and even thrived. Companies like Microsoft, Qualcomm, and Apple were able to weather the storm and continue to grow. This is an important lesson for investors in cryptocurrencies – don’t give up on them just because the market has taken a hit. There’s still potential for long-term growth.

Apple

Chart courtesy of Macrotrends

Anyone who bought Apple at $0.15 a share in 1998 and held it, experienced a 93,233% increase in their investment.

Owners of Qualcomm from the same period experienced a 6.900% increase in their investment.

Qualcomm

Chart Courtesy of Macrotrends

Lastly, holders of Microsoft from 1998 experienced a 2,540% increase in value from their investment.

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Microsoft

Chart Courtesy of Macrotrends

The Crypto world is abuzz with talk of a “bubble”. Some say that the incredible run-up in prices we’ve seen over the past year is just like the “dot com bubble” of the late 1990s and that a major crash is inevitable. Others believe that cryptocurrencies are here to stay and that the current price devaluations are growing pains and not a sign of Chicken Little’s “Sky falling.”

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