Cryptocurrencies have lost $700 billion of market cap since their peak. However, the scenario is no different than stock market in 2001 when stocks of Amazon and other prominent brands were down 98 percent from a year back. This bust would led to the biggest expansion of the tech the world had ever seen, shares expert.
“Most valuable assets and asset classes endure bubbles”
Cryptocurrencies are crashing down hard right now. The total market cap has crashed down to $130 billion from the high of $826 billion when crypto prices were at its peak.
Total Market cap 1-yr chart, Source: Coinmarketcap
Bitcoin has slid down to $4,000 from its all-time high of about $20,000. Majority of the cryptos are down between the range of 80 to 95 percent at the moment.
Top Cryptos from their peak, Source: athcoinindex
Many compare the deep fall in crypto prices with that of dot-com debacle calling it a bubble. However, the stock market is so no different as the stock market of US, China, and other countries are registering record losses. And as can be seen in this graph,
Meanwhile, FANG (Facebook, Amazon, Netflix, and Google) are not so different as they have dropped to serious lows as well.
This seems like the right time to reiterate eToro CEO Yoni Assia’s “Selling cryptocurrency now is like Apple in 2001,” from June. From the past 1 year, Apple stocks has taken a serious drop right now as well just like cryptos.
Apple Stocks 1-yr price chart, Source: Macrotrends
Bitcoin 1-yr price chart, Source: Coinmarketcap
Let’s take a look at the prices of the popular stocks like Amazon among others during the time of 2000 and 2002.
With these stocks falling about 98 percent, today they are still going strong. Now, with Bitcoin down less than 80 percent and altcoins dropping about 90 to 95 percent, the future possibilities could be endless and of high potential.
Weiss crypto ratings shared the similar sentiments as it Tweeted,
“Amazon was down over 95% over 2 years during the dot-com bubble burst. After the bust came the biggest expansion of the tech that the world had ever seen. If we are indeed in that stage of the evolution of #DLT, then in 2-3 years we’ll see a massive adoption of the technology.”
Erik Voorhees, CEO of ShapeShift says,
“Remember… just because something goes through a speculative bubble, doesn’t mean it is worthless. Most valuable assets and asset classes endure bubbles.”
A computer science engineer, I have been adamantly following the blockchain and cryptocurrency industry for the past 2 years. A crypto enthusiast and hardcore blockchain follower. Reach out to him at [email protected]