Comparisons have continued to be drawn between the present day cryptocurrency industry and what the internet companies of the 1990s and early 2000s was, with a lot of people suggesting that the cryptocurrency industry is already overtaking the internet companies in the popularity it experienced. The past three years have seen Initial Coin Offerings pull over $10 billion dollars in income for companies.
Popular figures including Bill Gates, Warren Buffet and Jamie Dimon among others have described the level of cryptocurrency rise as a bubble. The crypto-world has been predicted to be the most expected bubble since Tulip Mania.
The Penultimate Stage Of A Bubble?
2017 was a dramatic yeah for most cryptocurrencies, with Bitcoin hitting a 1,922 percent rise in price from $963 in January 2017 to a record $19,475 by the end of 2017. The surge wasn't limited to only Bitcoin, as Ethereum and other cryptocurrencies also experienced an incredible rise in value. As expected, the increase in prize spurred more interest as investors began to roll over themselves to be a part of the fast paying platform.
Despite the interest that the dramatic rise has fueled, critics have also continued to speculate on how the entire industry could be a bubble that will eventually burst.
Bitcoin, when it was introduced started with a promise to be a genuine and secured global currency, but price volatility, has continued to slow it down from been adopted into regular trading.
With time, different technology startups dived into the trend, hosting their own ICOs as a way to boost capital.
Comparing Two Era's (Internet vs Digital Asset)
If you followed events of the late 90s you'd remember how internet companies experienced a massive rise that saw the news talking. The internet companies became flooded with venture capitalists who wanted to pounce on the rise, and this, in turn, caused the platform to get more capital than it required.
Gradually, the internet industry began to pick the pace, as several internet companies soon went public. This naturally caused an outstanding rise in price.
Cryptocurrency critics have continued to base their arguments on this, citing similarities in the way price rise happened in the two scenarios.
Considering Cryptocurrencies Salient Points
Cryptocurrencies and other users of Bitcoin technology may still be in an early stage, but there's certainly plenty of prospects for newer companies to join in and offer use cases that will further enhance the present dynamics of the industry. Despite occasional reports of cases of fraudulent ICOs, there's no doubt that the blockchain technology has proven to be an industry that will continue to revolutionize industries.
Some companies that have efficiently utilized the space, gaining colossal success include Coinbase and Binance. Binance has grown to prove its dominance in the exchange business, while Coinbase is working to become the Google of the crypto-world.