Media Juggernauts See Similarities In 2018 Crypto Bear Market And Dot-Com Crash
Media is Comparing the Cryptocurrency Bear Market with the Dot-Com Crash
Investors all over the world witnessed how the cryptocurrency market moved from almost $900 billion dollars down to $180 billion dollars in just some months. Some virtual currencies have lost more than 90% of their value and continue to fall.
Because of this situation, mainstream media is comparing the dot-com bubble with the cryptocurrency market. Back in the 90’s an important number of companies raised huge amounts of funds, but in the year 2000 they completely crashed.
Indeed, some time ago, Bloomberg wrote an article in which they said that the crypto market crash of over 80% was worse than the Dot-Com crash. In the article, they explain how several individuals and investors placed their funds in several companies that seemed very attractive. However, they crashed some time later.
According to Neil Wilson, London’s chief market analyst for Markets.com, Bitcoin will likely be the only digital currency to survive after the bear market that we are now experiencing. On The Matter, He Mentioned:
“It just shows what a massive, speculative bubble the whole crypto thing was – as many of us a the time warned. It’s a very likely winner takes all market – Bitcoin currently most likely.”
Another important news outlet, The Independent, wrote a similar story some time after Bloomberg published its piece about the cryptocurrency crash. The title of the article featured at The Independent was:
“Cryptocurrencies are in meltdown – are we about to see the end of the bitcoin dream?”
The article argued that the cryptocurrency market cannot be perfectly compared with the dot-com bubble, but virtual currencies would disappear if the global market reacts on the matter.
It seems that mainstream analyst and media outlets cannot find an equilibrium related to virtual currencies. There are some things that should be changed in the market for it to become more mature. But the technology and usability that some virtual currencies provide are very positive for the whole world.
It is also important to distinguish between established and strong cryptocurrencies with tokens issued by companies through an initial coin offering (ICO). These tokens, in general, do not have the same use cases as other cryptocurrencies and are subject to continuous pump & dumps.
Regulatory agencies should generate legal frameworks for digital assets to spread and investors to be protected. If that happens, institutions and other wealthy investors would certainly start to be interested in these virtual currencies.