Comparing Cryptocurrencies TRX and XRP to Amazon and Apple Stock in 1990s
How buying Tron's (TRX) and Ripple's (XRP) Could be Like Buying Apple and Amazon Stock in the 90s
The crypto ecosystem is often compared to the early days of the internet where lots are to be gained, little to be lost.
Now even institutional investors are flocking towards the crypto markets that have for the last 6 months caused considerable heartache to die-hard crypto fans. This is clearly evident from the fact that BlackRock firm openly showing its interest in blockchain technology as well as cryptocurrencies. There is also the Swiss-based SIX exchange that plans on launching a fully integrated crypto exchange. Coinbase has also been given the green-light to list crypto tokens from ICOs on its platform.
Why the comparison to Amazon and Apple?
Both stocks of Amazon and Apple were very cheap back in the 90s. Looking at the price of Apple stock (AAPL) at the end of 1998, it was only valued at around $1. The same stock is now valued at $190 twenty years later. This is a percentage increase of 18,900%. Looking at the price of Amazon (AMZN) stock in 1998, it was valued at an average of $20. The same stock is now valued at $1,846 which is a percentage increase of 9,130% in 20 years.
The low price in 1998 of these two traditional stocks can be compared to the current low value of TRX ($0.037) and XRP ($0.47). It will not take 20 years for these digital assets to show gains similar to those of AAPL and AMZN as the crypto-markets function at a faster speed than the traditional markets. Similar returns would mean TRX and XRP could be worth $3.70 and $47 respectively which still is below many optimistic predictions of the coins.
It is safe to say that the early adopters of any technology or investment instrument are initially thought of being insane. But once the gains start trickling in, they are usually referred to as financial gurus when in actual fact, what they did was to follow their instincts.