The revolutionary cryptocurrency that had pulled the attention of almost the whole of the world seems to have a continuous downfall after its peak from January.
The cryptocurrencies continue to fall and the market reached a new level of $187 Billion. This crash of the cryptocurrency is bitter compared to the Dot-Com crash in 2000. The dot-com bubble was a historic economic bubble and period of excessive speculation that transpired roughly from 1995 to 2000, a period of extreme growth in the usage and compliance of the Internet. The investors had put a lot of money in the startups hoping to have a positive and profitable output. The bubble started to collapse in 2000 when companies started to declare bankruptcy and by 2001 the bubble got pinched. The internet-based startups started to collapse and soon the investors pulled their money, calling the dot-com as dot-bombs. The financial damage inflicted by the 9/11 terrorist attacks, led to widespread layoffs in the technology field.
The fall of cryptocurrencies is considered worse than dot-com as the crash crossed 80% from its peak when compared to Dot-Com the collision was only 78%. The cryptocurrency investors who bet big on a seemingly revolutionary technology are suffering a painful reality check, particularly those in many secondary tokens, so-called alt-coins.
Neil Wilson, the chief market analyst in London for Markets.com, a foreign-exchange trading platform said, “It just shows what a massive, speculative bubble the whole crypto thing was — as many of us at the time warned.” He further continued “It’s very likely a winner takes all market — Bitcoin currently most likely.”
The hopes that Bitcoin and other cryptocurrencies would become “Digital Gold” and that blockchain powered tokens would reshape industries from finance to food. This has quickly given way to concerns about excessive hype, security flaws, market manipulation, tighter regulation and slower-than-anticipated adoption by Wall Street.
Crypto bulls dismiss negative comparisons to the dot-com era by pointing to the Nasdaq Composite’s recovery to fresh highs 15 years later, and to the internet’s enormous impact on society. But even if the optimists prove right and cryptocurrencies eventually transform the world, this year’s selloff has underscored that progress is unlikely to be smooth.