Now that the cryptocurrency market has pulled back roughly 80% from its all-time highs, the mainstream media has begun making the comparisons between the blockchain industry and the infamous dot-com bubble that saw worthless internet companies like Pets.com raise hundreds of millions of dollars before the market collapsed.
A recent article by Bloomberg titled “Crypto’s 80% Plunge Is Now Worse Than the Dot-Com Crash” compared the breakdown of the crypto market to the 2000 crash, highlighting how mania prematurely drove billions of dollars into the industry.
The article includes a statement from Neil Wilson, London’s chief market analyst for Markets.com, claiming that Bitcoin will likely be the only digital asset to survive the current bear market.
It just shows what a massive, speculative bubble the whole crypto thing was — as many of us at the time warned. It’s a very likely a winner takes all market — Bitcoin currently most likely.
The Independent published a similar piece shortly after the Bloomberg article titled “Cryptocurrencies are in meltdown – are we about to see the end of the bitcoin dream?” that argued that while the comparison between crypto and the dot-com bubble may not be perfect, digital currencies are a “fringe” asset class that is likely to disappear once the global markets retract.
All things considered, it’s seemingly difficult for crypto critics and proponents to find a middle-ground, instead, they fall back to extreme positions and poor analogies. While it’s uncertain where this market will go, it’s always important to remember that past market events are not necessarily indicative of future results.
Disclaimer: This article’s author has cryptocurrency holdings that can be tracked here. This article is for informational purposes only and should not be taken as investment advice. Always conduct your own due diligence before making investments.