While Bitcoin is gaining an increasing share of the capitalization of the stock market, altcoins every day renew their annual lows. The world’s media has already called the situation a “repetition of the dot-com bubble”. And while the comparison is true, this is not a negative factor for kriptonyte. In the Platform understood as a correction of the main cryptocurrencies will be good for her.
When you start to grow Bitcoin
According to the index of the top 10 altcoins MVIS CryptoCompare, the stock market fell nearly 80 percent from their January values. We will remind, in 2000 the dot-com bubble burst and the stock market tech companies fell by as much as 78 percent. Then of capitalization took about 1.8 trillion dollars.
Chief analyst markets.com Neal Wilson had no doubt in such a scenario.
This is another proof of how huge and speculative bubble is a industry of the crypts. It is quite possible that soon the winner will occupy most of the cryptocurrency market. At the moment, this surely goes Bitcoin.
However, the price of the asset is not an indicator of its success in the future. During the collapse of the dot-com value of Amazon’s stock went from a hundred dollars to below ten dollars. Rollback almost 90% did not prevent the stock to rise to $ 2,000, 18 years after the bubble.
The fact that many companies survived the fall of the market gives hope for the gradual development of cryptocurrencies. At the time, investors were buying shares collapsed Amazon not for some technical reasons, but because of faith in technology.
Bitcoin also experienced multiple bubbles in its history. For example, in April 2013, the value of the main cryptocurrency skyrocketed to $ 200, after the asset has gradually grown to $ 1,150. Then followed the drain to 200 dollars. The fall of Mt. Gox and a massive disappointment for early investors has not prevented Bitcoin to reach 20 thousand dollars at the end of last year.
The fear of investors before the complete collapse of the digital asset is not justified. The industry is developing both technically and fundamentally. Network Lightning Network Bitcoin is expanding with great speed, and the developers of Ethereum will soon launch the most important update in the history of cryptocurrency.
In addition, the infrastructure around of the stock market also has huge growth potential. By the end of this month, the Commission on securities and stock exchanges of the USA should be determined with the approval of the first cryptocurrency ETF. If the SEC makes a positive verdict, the crypt can come in large amounts from institutional investors. All this will be a good impetus to new bullrun.
While new Lambo is still waiting for you in the showroom, visit our cosy cryptcat.
SUBSCRIBE TO OUR CHANNEL IN THE TELEGRAM. WAITING BITCOIN FOR A MILLION.