Bitcoin (BTC) is Like Amazon of 2001, it’s Grossly Undervalued

Mainstream economists and political leaders always point at Bitcoin’s volatility as its main undoing. Needless to say, similarities can be drawn from past events that shaped modern tech companies. In 2000-2001 when the dot-com bubble popped, the likes of Amazon, Yahoo, and Priceline fell by 96% before minting millionaires in subsequent years.

The Potential

While Bitcoin is volatile thanks in part to its low level of liquidity, it remains a high potential digital asset that is indispensable in any modern portfolios.

Also, despite falling by 75% at the deep of 2018 winter, the coin has spectacularly recovered.

At spot rates, Amazon (AMZN) is an 873.07B giant and its share trades at 1,760.94 at pixel time. For those who held their shares, believing in what the company stood for, they are now millionaires.

The same can be extend to Bitcoin and cryptocurrency projects that purpose to serve a specific niche.

Bitcoin Is Backed By the Masses

Bitcoin, even as central backed digital currencies sprout, has the backing of the community and has evolved to be not only a medium of exchange but a store of value. A shield during economic crises or political turbulence, the network is censorship resistant yet transparent enough to the joy of law enforcement.

The Bitcoin network’s main value proposition is its high level of decentralization meaning it cannot be shut off easily due to investment in the space. The Proof of Work consensus algorithm means miners expend electricity, a utility which isn’t cheap.

Although Bitcoin exists in the digital ether and cannot be used for other purposes as gold for example, it is far much better to hold it because of its advantages over fiat, or bananas—despite its edibility as Mark Cuban argues.

Amazon market cap is 4.5X Bitcoin’s

Going forward, HODLers stand to benefit. The total market cap of cryptocurrencies is a quarter of Amazon’s and 4.5X that of Bitcoin.

If Bitcoin adoption increases, chances are BTC is grossly undervalued at spot rates. Time is the only ingredient.

The same ingredient that Amazon, Google, and all those mega-billion companies that rose to prominence from the dot-com ashes needed to be what they are worth in 2019.