Why the crypto bubble will be much bigger than the dotcom bubble
The crypto bubble will likely end up inflating much bigger than that of the Nasdaq bubble in the late 90's.
Some say that the bitcoin/crypto bubble has already burst, falling from a high around $900 billion, down to the current level of around $200 billion.
However, last time I checked $200 billion was well above $0, which is where people would have you believe that crypto is currently by all of their "crypto is dead" claims.
Crypto and bitcoin will likely experience many boom and bust cycles on its way higher.
That being said, the next re-inflation of the crypto bubble will likely make the Nasdaq bubble look small by comparison.
Why do I think that you might ask?
For one simple reason...
The Nasdaq bubble was fueled mostly by wealthy Americans bidding up stocks. The crypto bubble is global in nature.
There are roughly 350 million people in American, while there are 7 billion people in the world.
Crypto is a global phenomenon while the Nasdaq bubble was mostly a US phenomenon.
Mike Novogratz of Galaxy Digital said something very similar when asked where he sees crypto going:
"[Cryptocurrency] is a global revolution. The internet bubble was only a US thing. It was rich US people participating. [Cryptocurrency] is global. There are kids in Bangladesh buying coins. It is monstrous in Tokyo, in South Korea, in China, in India, and in Russia. We’ve got a global market and a global mania. This will feel like a bubble when we’re at $20 trillion.”
(Source: https://www.ccn.com/novogratz-says-cryptos-are-safe-expects-bitcoin-to-rally-in-q1-2019/)
The next surge will make the Nasdaq look small by comparison.
The Nasdaq peaked at around $3 trillion in value back in 2000.
Crypto peaked well below that recently, at around $900 billion.
However, this next surge, if it goes as predicted by Novogratz, will likely blow that $3 trillion number out of the water.
For all our sakes, I sure hope he is right.
Stay informed my friends.
Image Source:
https://www.newsbtc.com/2018/01/23/goldman-sachs-warns-high-profile-clients-of-crypto-bubble/
Follow me: @jrcornel
20 trillion, that is 100x what it is now.
If that happens I retire, lol, even my steem would be worth half a million. And since I am not powering down, who knows how much we all will have in 2020
Sure sounds nice, doesn't it?
Hope I don’t take a Bubble Bath 😂🤪😂
Yea you gotta be careful about those corndog.
Crypto and silver will have massive gainzzzzz in 2020! Load up ladies! 😂
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What is gonna send silver higher? I have an idea what might send bitcoin higher...
This lady is loading up my saddlebags with as much as I can carry LOL...I think I may need to buy a burro to tote it around for me :D
Luckily bitcoin can be stored on a chip, that weighs almost nothing. :)
I sur(g)e hope he is right!
I surge hope he is right as well!
Definitely a possibility with the amount of capital in the financial markets alone! How much will ultimately flow into blockchain and cryptocurrencies is still to be seen but it has definitely started!
They are dragging their feet putting money in now because this is the first time in history that retail is in before institutions in an asset class. They are likely going to try and create their own that they will be the first ones in to. Hopefully markets show some barriers to entry and force their money into existing coins.
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I’m betting somewhere around 145 trillion dollars, that’s probably going to be the highest peak.
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145 trillion? Was that a typo?
I’m trying to be hopeful.
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Well that is certainly optimistic indeed!
There was/is/won't be a crypto "bubble". This is a fucking bubble bath. We had a small bubble last year, as bitcoin surged a bit higher than it was perhaps worth at the time. But the value of various cryptos is likely far lower than they will be in even the near future. They serve legitimate uses. Until everyone in the world owns a few hundred dollars or more in at least one crypto or another, the bubbles will continue.
Very true. There are smaller bubbles within the context of a larger bubble. While smaller bubbles inflate and burst, the larger bubble just keeps inflating over time. Next stop, $20 trillion.
Good article. Crypto is a global bubble and dotcom was only in America. I don't see why we can't hit a trillion market cap valuation once this correction is over.
We almost did at the beginning of 2018. Got up to around $900 billion at one point briefly.
The dot com bubble was based on .. nothing. Huge evaluations for a website that could be put together in 30 minutes... remember pets.com? Crypto is an inherently useful wealth transfer mechanism, and the implementations which are being developed across the space as a whole are oftentimes very unique. When people wake up to what is happening here... yeah... the bubble is going to dwarf anything that has ever happened before.
20 trillion works for me! :)
I'll take it as well :)
Most altcoins are also just quick money grabs that don't offer any value. I'ts based on nothing just like the dotcom bubble. You can copy the bitcoin code and make your own altcoin in 30min time. 90% of the cryptocurrency that exist today will probably disappear within 10 years.
That is a good point. Lot of garbage out there. I envision a few coins holding most of the value with a whole host of much smaller niche coins that don't hold much value.
Oh gosh, lets see there are 2112 cryptos currently listed on coin market cap. Id go much further than 90% that still leaves over 200 of currently listed cryptocurrencies of today still around in 10 years. Even good ideas fail, so Id bet that no more than 2% of current day cryptos remain in 10 years. That gives us 42 winners out of the current 2112.
Will steem be one?
I wouldn't be here If I thought it wouldn't. Trying to do my part to ensure that 10 years from now, we are looking forward to the next 10.
@remind.bot 10 years