Cryptocurrency: The Dot-Com Moment

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The Dot-Com bubble is firmly etched in the minds of many people. It was an important point in human history.

Certainly it might seem like an overstatement when discussing the concept of the stock market to human progress. However, in this instance, it changed the course of humanity, albeit not directly.

The Dot-Com bubble was a massive run up during the late 1990s and early 2000s in the equities market. This was driven by the hype surrounding the Internet. Many people saw the potential of this new medium and the propaganda hit a feverish pace.

Of course, much which was promoted was garbage. There were companies with ridiculous valuations that were not going to make money. Some very good ideas were doomed to fail simply because of timing. That said, a lot of what took place was just nuts.

Does this sound familiar?

So what made the Dot-Com bubble so important to humanity?

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Taking Out The Trash

Bear markets are cleansing. They come in, with a sledge hammer, and obliterate all that is not strong. Anything that is fluff as well as excess gets washed away.

While painful, this is very healthy. During the Dot-Com era, there were people getting millions of dollars simply because they claimed they were going to build an application. The "Internet Super Highway" was the basis for the new economy.

Everyone wanted a piece.

This inclination turned out to be right. The economy was forever changed although not in the way many imagined and certainly not on the time frame that was espoused. It took more than a decade for a company like Amazon to become a major force.

Here is where the reality of change ran head on into the tendency to hype. Whereas fantasy was the driving force for higher stock prices, the underlying push forward was taking place.

Nevertheless, something had to break.

Of course, Yahoo at $475 per share told us exactly what was going to give. The market broke and in a hard way. The excess was cleared out and many investors (speculators) left, not to return to the markets for many years.

It was a catharsis in many ways. Once the lunacy left the building, some actual work got done.

Dot-Com 2.0

We are witnessing history repeating itself.

There is no doubt the Internet changed society forever. The way we interact, work, and play was all radically altered. Now, we are embarking upon another revolution taking place.

Like the last time, this is evolutionary. It will take more than a decade to truly see the results. The "Amazon" of this era still has yet to emerge. It is there and we must find it.

With the bear market, we see the excess in cryptocurrency being removed. A lot of the fluff that was present over the last few years is now dying. The first wave came with the popping of the ICO craze. That saw the ending of outright foolishness.

This time, things are a bit different in that we had actual companies that were operating. Nevertheless, their business models were such that unsustainability was present. When the music stopped, bankruptcy filings started.

Again, while this is painful, it is healthy. Just like the Dot-Com bubble had to end, so did the cryptocurrency craze. Now, we see a contraction that actually makes the industry more powerful.

The markets do not lead to success. That is not where the builders are located. Instead, those who are making the change possible are hard at work in spite of the bear. Nothing is stopping them.

That is where the future lies. They are the ones who know what it will be since they decided to build it.

Fast Fortunes Await

Blockchain is very powerful. Those that are building on it are going to find a great impact is made. That said, nothing everything is going to be a stunning success.

Nevertheless, there will be Amazon, Facebook, Netflix, and Priceline type opportunities. Cryptocurrency is something that allows all to participate.

Most people run away when they should remain. We see this each bear cycle. When prices start to drop, many just exit. They allow the market to dictate the opportunities that they are presented with. Obviously, by leaving, they have few.

Those that remain are the ones who will benefit. It is not easy to endure massive volatility. However, when we focus upon the paradigm shift that is starting to take place, we can see how the financial benefits can be enormous.

Indeed, we are likely looking at the greatest wealth generator in human history. As stated, this will take more than a decade to play out but the time to be in is now. Many regret leaving the market when Amazon and Google were a fraction of the price they are today. Yet, that behavior is being replicated with cryptocurrency.

There are coins and tokens that have 10x-100x moves in them. in fact, there are going to be a large number of them. The one thing we do know is we will not find them from the sidelines.

The Dot-Com bubble was a turning point in history. Sadly, for most who were involved, they turned tail and ran. The pain of market action was too much for them.

We can see some parallels between what happened with cryptocurrency and that era. Will the same thing occur post crash? Time will tell. However, since the underlying is technological advancement, it is safe to say there is a good chance history will repeat itself.

Those that remain strong and focus upon the long term will likely do well.


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40 comments
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Bang, I did it again... I just rehived your post!
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!BEER
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(Edited)

I guess you could compare that point in time to the California gold rush of the 1800s. Many prospectors. Some made their fortunes but others went bust. Just for fun, a look at the Internet Archive.org way-back machine should reveal a good sample of big names that didn't survive after the proverbial bursting of the bubble.

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True but the people selling the shovels made a fortune.

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I was thinking the same thing! The people who provided products and/or services to the gold miners made money whether those miners struck it rich or not. Which begs the question of what are the products and/or services which will stand the test of time overall?

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Because this is such an awesome post, here is a BBH Tip for you. . Keep up the fantastic work

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Crypto hasn't had it's dot-com bubble moment yet.
Not even close.
These year long bear markets are nothing.
The dot-com bubble lasted a full decade.
For some reason I assume you read this post even though it's from 2018...

But I mean yeah of course all your points are valid.
I just think there will be one that's 10 times bigger than the ones we've seen.

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Nothing says that it has to hit that size and have the magnitude. Do not forget, when the dotcom bubble was raging, there was very little in operation with the Internet. There were few applications and even fewer people.

Cryptocurrency is enjoying massive expansion, meaning that our development will be much further along, adding a baseline that took the Internet more than a decade to achieve.

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The technological revolution with blockchain will be quite massive. It's the key infrastructure in the third iteration of the internet(web 3.0). Blockchain has the potential to disrupt many industries and big players are starting to realise that.

What's more exciting is the new emerging players that a harnessing this technology to build completely new and efficient models. I believe this time we live in is a turning point in history in terms of technological revolution and those who are able to capitalize on it will reap huge benefits in the coming decades. In orders of magnitude :)

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I think the fact that we are at the point where development is starting to eliminate the potential excess shows how rapidly things are changing.

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I think that those that are resilient enough during crypto bear markets and stick to their routine, will be repaid in the end. Just need to choose good projects that reshape domains (like Hive does) and it is hard to go wrong with them.

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The technological advancement will ensure that we are not to see this again. The baseline in development is where the industry is.

Not the hype of the market.

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A better side to cryptocurrency era to the dot com era is anyone as wished can partake in cryptocurrency and tap into the opportunity it presents.
The big test though is having to stick around for the long term at times full of pain with exciting journey.

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We can learn from the history of what took place in the past. The parallel between today with crypto/blockchain and that era are uncanny.

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(Edited)

A lot of so called shit-coins are going to be erased maybe. Unfortunately also lots of people will finish with a bad experience if they had the bad luck to be there as for example all the innocents who were affected with LUNA (now LUNC) crash.
Maybe we are in the dot-com-verso crisis!
Let's stick to HIVE and LEO to survive this winter!

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“ A lot of so called shit-coins are going to be erased maybe. “
you are correct.

A third will fail easily this is why I see no evidence we’ve had our #dotcom montmt yet.

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It is really very hard and painful to sustain when your portfolio is at 10-20% valuation from its high. But those who stand firm even in the storms, victory belongs to them.

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The future is certainly bright with blockchain, still looking at the opportunities that crypto presents as I seek to increase my assets on the decentralized App from https://atomicwallet.io/, on the long term.

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Great Post!

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It is still necessary to share more of the stock market and cryptocurrency with people around the world. Thanks for this, sir.

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If you are in crypto just to hold and hope to profit from some coins, there's a big incentive to get out and run away when things turn sour. I haven't seen anything like it happening on Hive no matter if the price went from $2-3 to $0.20-$0.40 because people here are not in "just" for the money.

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The crypto craze in the previous bull market was crazy so I am not surprised to see a lot of it unravel. There are a lot of cryptos that were unstainable.

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Yeah, I'm thinking we're definitely still at the "what is Blockchain?" Phase

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History always repeats itself, and it's going to repeat again. We may or may not be in the dot-com bubble like phase but it's inevitable that most projects will die. Yeah it might take years or more than a decade for crypto currency to get mainstream adoption.

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Market rekted me and made me put my project on hold right now am in a very tight corner the saving grace is I still have hive

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It is important that people are able to differentiate a bear market from a crash. So many people love to attribute cryptocurrency to a bubble giving illustrations to bear market seasons as examples of crash, only to end up saying we were only lucky the bubble didn't burst.

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I am not familiar with the Dot-Com affair, but I think that right now in the crypto world there is just a bit of cleaning up happening. This thriving market has been spawning new projects every day, and many of them don't have good foundations. It will remain standing that has been able to build good projects, HIVE and his ecosystem will be one of those projects that will remain standing.

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