Mainstream financial media's attempt to compare the January 2018 cryptocurrency correction to the 1999/2000 dot-com burst shows their naivety when it comes to Bitcoin and the entire crypto market.
Cryptocurrency has only just begun to enter mainstream awareness never mind adoption. By the year 2000 when the dot-com burst was in full effect, over 43% of the United States population was using the Internet. In contrast, after roughly eight years Bitcoin is at best in its early adopters phase. It is estimated that only .046% of the target population of crypto users has adopted this technology. We are not at the peak of this cycle as mainstream media would like to suggest, rather we are just starting up the bitcoin adoption lifecycle.
The Internet was a collaboration of universities and government institutions. These institutions were well funded. Once the potential of the Internet began to be understood mass amount of investment from government, education, and private institutions followed. In stark contrast, there has been little to no investment by any of these entities in cryptocurrency. In great part Bitcoin and cryptocurrency has been supported by small individual investors who support the technology and/or want to make money. The day will come when mainstream investors and possibly even governments will make a big move into cryptocurrency. When this happens the market will explode higher.
Almost every government around the world has put roadblocks in front of Bitcoin and cryptocurrency development. This too is in stark contrast to the Internet where almost every government assisted their people and businesses gain Internet access. Bitcoin has had threats made against its existence since day one and countless times thereafter. The Internet never faced such a constant threat. In fact I believe it is a testament to the power of Bitcoin for having survived.
Bitcoin threatens banks and the entire financial system for that matter. The Internet promised ever greater profits for the banks through huge cost savings and investments. Bitcoin survived a direct assault from one of the greatest bankers in history, Jamie Dimon of JPMorgan - Bitcoin survived and Dimon backtracked. Think of the potential investment when banks and other financial institutions begin adopting blockchain technology - and this is already beginning.
The first ICO occurred in 2017. The ICO is an entirely new use for cryptocurrency. To say something that has not even been around for a year is in a bubble is difficult to understand. By the time the dot-com bubble burst in 1999/2000 almost all of the foundation technologies of the Internet had been established. Crypto wallets and payment systems are just beginning to become available to mainstream users and businesses around the world.
Bitcoin and cryptocurrency is in its infancy, maybe its early adopter phase. If Bitcoin was being used by any significant percentage of the population I would entertain this notion of a bubble crashing. We are just starting up the very long and steep lifecycle curve. And to prove this, even after this terrible correction, year over year, Bitcoin is still up several hundred percent.
The comparison between the dot-com bubble bursting and the January 2018 correction is untrue and distorts history. We have not even begun to reach bubble phase. I am holding my crypto. I’ll begin selling when my niece asks me if I have any Tron so she can buy a puppy.
This is just the beginning.