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Getting Rid Of Cryptocurrencies Now Is Like Selling Apple and Amazon Stocks in 2001

Getting Rid Of Cryptocurrencies Now Is Like Selling Apple and Amazon Stocks in 2001

Crypto News

Ever since the appearance of various cryptocurrencies such as Bitcoin, Ethereum and several others, many people have prophesied that soon all of the cryptocurrencies will either crash or they will prosper. The trends in cryptocurrencies have been correlated to global results such as tulipmania, the 1929 stock market crash and the dotcom bubble. However, even after the current decline in crypto prices, the crypto world continues to pull new investors. Let’s take a look at the reasons why.

Getting Rid Of Cryptocurrencies Now Is Like Selling Apple and Amazon Stocks in 2001
Bitcoin Price

Stock Market vs Crypto Market

The stock market and crypto markets are almost two sides of the same coin. This is because in the stock market people actually invest in the company and in the cryptocurrency market people invest in the technology or any cryptocurrency.

In the crypto market, the impact of investment is directly proportional to the total assessment of the cryptocurrency market. No one really identifies what the cumulative market capitalization for cryptocurrencies is. The crypto market also runs almost ten times faster. This influences everything. Rates go up faster, rates go down faster, prices change at enormous magnitudes.

Amidst this, the price of the world’s top cryptocurrency Bitcoin has fallen below $4,000 for the first time in the year 2018 as the crypto market remains to plunge. At press time, the principal cryptocurrency by market capitalization is trading at $3,929.48 on Coinlib. Cryptocurrencies have lost more than $650 billion of market cap since their zenith. However, the situation is no offbeat than the stock market in 2001 when stocks of companies like Apple, Amazon and other leading brands were down 97%.

Getting Rid Of Cryptocurrencies Now Is Like Selling Apple and Amazon Stocks in 2001
Top 10 Cryptocurrencies

Expatriated American whistleblower Edward Snowden has said that while the Bitcoin market will be ultimately fade away but the use of cryptocurrencies will not end with bitcoin, reported CCN.

Speaking in an interview with Ben Wizner, Director of the ACLU Speech, Privacy and Technology project, Snowden said that

That belief is how cryptocurrencies move enormous amounts of money across the world electronically, without the involvement of banks, every single day. One day capital-B Bitcoin will be gone, but as long as there are people out there who want to be able to move money without banks, cryptocurrencies are likely to be valued.

In the month of June 2018, Yoni Assia, CEO of trading platform eToro, had compared the price decline with the dotcom bubble analogy.

What is Dot-com bubble?

The dotcom bubble was an accelerated growth in U.S. investment estimates gassed by investments in Internet-based firms during the bull market in the late 1990s. During the dotcom bubble, the value of equity markets increased exponentially, with the NASDAQ index increasing from under 1,000 to more than 5,000 between 1995 and 2000.

The explosion of the bubble, identified as the dot-com crash, persisted from March 11, 2000, to October 9, 2002. During the crash, numerous online shopping companies like Pets.com, Webvan, and Boo.com, as well as information companies, such as Worldcom, NorthPoint Communications and Global Crossing collapsed and shut down. Other companies’ (such as Amazon, Apple, and Cisco) stocks decreased drastically but survived and recovered quickly.

Total Market Cap Of Cryptocurrencies

Cryptocurrencies are dropping right now. The total market cap has fallen to $125  billion from the high of $820 billion when crypto prices were at its peak.

Getting Rid Of Cryptocurrencies Now Is Like Selling Apple and Amazon Stocks in 2001
Cryptocurrencies Total Market cap

Market administration is something that doesn’t actually survive in the stock market, however, in the cryptocurrency market, it clearly does. Is it an immoral thing? To some degree, it might be advantageous for the broader adoption, since it gets more people connected.

From 1995 to 2000, people invested heavily in “.com” organizations which were regularly built without conventional enterprise models. Nowadays, people or companies can develop new designs that can be reported on a whitepaper for the whole world to understand. Since these inventions are productive, millionaires invest in initial coin offerings (ICOs). Even if many of them contribute something personally, the whole project can raise millions within a short period of time. For example, SEBA Crypto AG raised $103 million to build a crypto bank. SEBA Crypto AG (SEBA), a Swiss startup had raised $103 million (100 million Swiss francs) to build a crypto bank. The company was in talks with Swiss financial regulators since April.

Disclaimer: This information should not be interpreted as an endorsement of any cryptocurrency. It is not a recommendation to trade. The cryptocurrency market is full of surprises and overhyped assets. Do your research before buying anything. Do not invest more than you can afford to lose.

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