Crypto Asset Adoption Continues Upward, Uncanny Resemblance to Internet’s Usage in the 1990s
Back in 2017, when Bitcoin (BTC) reached its all-time high of $20,000, many individuals and experts compared the bubble experienced by digital assets to the one that the market saw in the dot-com era. These two industries had some similarities.
There were many projects that aimed at stealing investors’ funds, creating a negative sentiment towards these new technologies that were being developed.
Internet and Cryptocurrencies Follow Similar Trends
According to Nic Carter, a partner at Castle Island Ventures explained that the number of blockchain users is equal to the one of the Internet in 1997 close to 50 to 70 million. Of these amount of users, just a few million are actively involved in the cryptocurrency market and participate in daily activities in the space.
In terms of adoption by # of users, public blockchains are roughly where the internet was in 1996–1997 (50-70m users worldwide).
— nic carter (@nic__carter) April 24, 2019
Nic Carter asks on Twitter why the market experienced such a large bubble in 2017 and why was much faster than the dot com boom almost 20 years ago. He provides three hypotheses regarding why this happened in such a specific way.
The first thing he says is that the Dot Com bubble was recent memory for those over 30. Thus, people knew that new technologies could expand and grow in very fast ways. This is why they bid up the price of virtual currencies in expectation.
The second hypothesis he has is that cryptocurrencies are an financial phenomenon but internet startups were a tech phenomenon. Thus, he says that the growth in cryptocurrencies was directly observable as ideas had exchange rates.
Finally, he says that 2017 seemed a large bubble because it had bad metrics. The market now knows that exchanges cannot be trusted and that data aggregators provide information from sources that tend not to provide proper information. He then mentioned that the cryptocurrency industry is smaller and less impactful than what we believe it is.
According to Mozilla’s 2019 Internet Health Report, more than half of the global population has internet access. This is very positive but there are still some issues that must be solved. As per the report, developed countries have 80.9% of people online. This number goes down to 45.3% for developing countries.
Europe, for example, has the largest number of users, 79.3%. Meanwhile, Russia and ex-soviet states have 71.3% of its inhabitants online. The Americas has 69.6% of its population online. In Africa, only 24.4% of people have access to the web.
There is still a lot to do and to improve in both ecosystems. The crypto space wants to keep growing and the internet has a lot to improve for the future, even when there has been a sustained adoption trend over time.