Why Cryptos still aren't in a bubble - addendum

anomiej (45)in #bitcoin • 7 years ago

This is a follow-up post on my own article : what we can learn from the Dot-com bubble, and how Cryptos are nowhere near that stage.

I just stumbled upon another argument that went against the idea that we're in a bubble:

The dot-com bubble was a crash that happened on the Nasdaq, an american exchange. Cryptos are, by essence, a worldwide phenomenon. A lot of investments are made in Asia : 20% of today's volume has been with korean and japanese exchanges (https://coinmarketcap.com/currencies/bitcoin/#markets).

So let's recap. The total market cap of cryptos is 0.33 trillion USD right now. When the dot-com bubble burst, the ATH was 6.71 trillion USD. Taking into account inflation, that ATH was 9.52 trillion in today's dollars. Taking into account that the dot-com bubble was a "local" bubble, the ATH of a global dot-com bubble would've surely been higher than 10 trillion, and probably higher than 15 trillion. The current market cap of cryptos is a ridiculous 3.3% of 10 trillion USD. We simply are nowhere near an actual bubble, at least if you believe cryptos will shape the future, just like the Internet did.

Disclaimer: just as the first article, this article is focused on the long term future of cryptocurrencies. BTC could drop to $500 tomorrow, it wouldn't change my point. This isn't investment advice. Don't invest more than you can afford to lose.

If you enjoyed this article, please upvote, comment, and share it with your fellow steemians! This is a 100% Power Up post.

#crypto #cryptocurrency #bubble #blockchain

7 years ago in #bitcoin by anomiej (45)

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minnowsupport (71) 7 years ago

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