CNBC conducted an analogy between the growth of bitcoin and the dotcom bubble

In 2017, the crypto currency, bitcoin was strengthened by almost 400% - this was helped by the interest of institutional investors. However, the strengthening of the crypto currency is not much different from the growth of the Nasdaq Telecommunications index before the bubble of dotcoms burst in 2000, CNBC reports .

On the night of Friday, September 1, the Crypto currency reached a record high of $ 4802.74, an increase of 3.7% to the previous fixation. In August, bitcoin increased by 67%. David Adair, chief strategist at Informa Financial Intelligence, compared the chart of the Nasdaq Telecommunications Index in its peak values with the bitcoin schedule.

bit curve

David Ader chief strategist at Informa Financial Intelligence: "In my opinion, this is a price chart for a very lightweight market. I just do not see anything that can be compared with it from the bubble point of view. ... I think that it will end badly. I do not know anyone who actually used bitcoin for legal or any other purposes. This is a very "foamy" market, and such markets always lose their foam. "
From 1995 to 2000, the Nasdaq Telecommunications Index strengthened by more than 700%, and in the next two years lost 90% in price. Now this index is 75% lower than its record value.

But bitcoin capitalization is about $ 78 billion, and all the crypto-currencies cost about $ 170 billion. Thus, the crypto-currency market represents less than 5% of the shares at $ 4 trillion during the telecom boom, Chris Burnisuke, author of Cryptoassets: The Innovative Investor's Guide to Bitcoin and Beyond (Crypto-active: a guide for innovative investors in bitcoin and beyond).

Chris Berniske: "If people think that this is a" big bubble, "then they do not have an understanding of how great the idea of crypto assets is."
The dotcom bubble burst in 2000. He formed a sharp increase in the shares of Internet companies, the emergence of newcomers to the market, as well as the reorientation of business on the Internet.

Recall, in August, Deputy Minister of Finance of Russia Alexei Moiseev made a proposal to ban the sale of bitcoins to individuals, opening access to the crypto-currency only to qualified investors. The creator of Telegram Pavel Durov criticized the proposal of the Ministry of Finance.