Bitcoin vs "Dot Com 'bubble'"

[Parodium]

Well Bitcoin is currently mostly used as a store of value, also an investment, it is similar to the dotcom bubble in that regard.

However the difference is, it required technical skill and marketing efforts to profit from the .com bubble, whereas bitcoin is finite by design, and hence increases in value due to this design.

Both have(had) the potential to collapse, but bitcoin has more staying power in my opinion.

[1Referee]

Well Bitcoin is currently mostly used as a store of value, also an investment, it is similar to the dotcom bubble in that regard.

Bitcoin is being used mainly as speculative investment tool. The majority of the people have yet to understand what store of value actually means. And then if people do somewhat understand what it means, there is still a major gap between the side who thinks that Bitcoin is a perfect store of value tool, and the side who thinks that Bitcoin isn't a store of value tool at all.

However the difference is, it required technical skill and marketing efforts to profit from the .com bubble, whereas bitcoin is finite by design, and hence increases in value due to this design.

People back in the days didn't had the technical skills that you are talking about. It was just pump money into anything having to do with the internet, and that was really it. It resulted in businesses heavily losing money, to still be able to attract millions and millions in capital. It was more a period lead by blind rage buyers.

[ASHLIUSZ]

Some people speculate bitcoin to be the something similar to the dot com bubble that happened around the nineties. I never think it in such a manner, because bitcoin is something completely technology backed. Apart from that, the service it provides is much big compared to the dot com bubble and real time usage and user community keeps growing.

[naidray]

Bitcoin can not be compared with dot com, because it seems to me that bitcoin is already the next step in the Internet business. Since there is a huge experience obtained since the late 90's, bitcoin thoroughly and deeply penetrated our consciousness and convinced that it is the future. I think bitcoin is an excellent business idea that will certainly continue to develop.

I would rather say the blockchain technology is next in the internet business but bitcoin will always be a part of the day.

We could have been in a bubble recently or some may still feel we are in a bubble, but this is a market that is driven by supply and demand and as long as what you are holding is always going to be useful and solves a huge problem, which I believe bitcoin and some other coins will do, then I would not classify it as a dot com bubble kind of thing.

[HeRetiK]

[...]

People back in the days didn't had the technical skills that you are talking about. It was just pump money into anything having to do with the internet, and that was really it.

[...]

Replace the word "internet" with the word "blockchain" and you pretty much get today's market, unfortunately.

[...]

We could have been in a bubble recently or some may still feel we are in a bubble, but this is a market that is driven by supply and demand and as long as what you are holding is always going to be useful and solves a huge problem, which I believe bitcoin and some other coins will do, then I would not classify it as a dot com bubble kind of thing.

That's the tricky part though. Something can be useful and still be a bad investment. To succeed, you need to find something that is useful, solves a huge problem and is not severly overpriced by the market. The last point being especially hard to asses in our case, given that crypto is a new asset class without precedent that one could meaningfully refer to.

[Enjel]

[...]

People back in the days didn't had the technical skills that you are talking about. It was just pump money into anything having to do with the internet, and that was really it.

[...]

Replace the word "internet" with the word "blockchain" and you pretty much get today's market, unfortunately.

[...]

We could have been in a bubble recently or some may still feel we are in a bubble, but this is a market that is driven by supply and demand and as long as what you are holding is always going to be useful and solves a huge problem, which I believe bitcoin and some other coins will do, then I would not classify it as a dot com bubble kind of thing.

That's the tricky part though. Something can be useful and still be a bad investment. To succeed, you need to find something that is useful, solves a huge problem and is not severly overpriced by the market. The last point being especially hard to asses in our case, given that crypto is a new asset class without precedent that one could meaningfully refer to.

Yet we can be pretty sure that we are not at the tipping point yet.

This whole market is certainly a bubble. The question is how long can it be ridden upwards.

And BTW, even after the 80% Market cap drop some theorize will happen "soon", just like Amazon and others during the tech boom, the major coins that survive the collapse will reach new ATHs as they are integrated more fully into society.

So coins like Bitcoin, Ethereum, and sadly Ripple (very overpriced right now, but the banks support it, so it will stay) will be here for the long haul.

[TERA2]

Anything positive you can say about bitcoin now, they were probably saying about dotcoms and 'internet technology' in the 90s. They probably invented the word FUD too. Theyre similar in that they are both two revolutionary technologies and that they got a huge craze of investors at one point that went way ahead of the actual adoption, which eventually grew to meet those prices but not for 5-10 more years

[el kaka22]

Anyway, the .com bubble was a strange beast.  Startups were getting funded that shouldn't have.  Companies were valued in the billions without having ever turned a profit.  

They are not companies but this is exactly the same behaviour as the Dotcom bubble. I think looking back in a few years time the parallels will be uncanny.

New tech, largely worthless initial applications are hyped by people who understand nothing about them, people eventually realise they're worthless, massive crash. The real tech reemerges a few years later and becomes a global beast.

I think a few coins will survive such as Bitcoin. Most of them will be flushed away as the shit they are.

It would be far, far better for everything and everyone if there was a vast crash now before all the world piles in. That would give the time to fix some glaring issues and reflect on the utter crap that got pushed so high.

I don't think it's going to happen though so a lot of shirts will be lost.

Yeah, most of the coins without real life usage will end up being flushed away and some will not even taste the light of the day. The thing is that most investors are becoming aware of that and hardly will you even see a project without a feasible and usable product or solution to some problems will actually get any fund. However, comparing the whole crypto market to the dot com era is something totally unrealistic.

Bitcoin and dot com bubble is the worst form of comparison anyone can ever make. We all know the whole thing about the dot com bubble and we really do not need to start reiterating that, and for anyone who really understands the technology behind bitcoin, would not even in anyway classify bitcoin era as the dot com era. Bitcoin would grow in value but for the usefulness of it.

[HeRetiK]

Yet we can be pretty sure that we are not at the tipping point yet.

This whole market is certainly a bubble. The question is how long can it be ridden upwards.

Indeed. It's a bit worrying, as the crash will be all the more harder. I guess it can't be helped though.

And BTW, even after the 80% Market cap drop some theorize will happen "soon", just like Amazon and others during the tech boom, the major coins that survive the collapse will reach new ATHs as they are integrated more fully into society.

So coins like Bitcoin, Ethereum, and sadly Ripple (very overpriced right now, but the banks support it, so it will stay) will be here for the long haul.

Being there for the long haul won't protect any coin from tanking hard though. Once the time comes, some coins will be hit harder than others, at which point we'll see how much of each respective price was real and how much of it was market manipulation and wishful thinking.

[thejaytiesto]

Yet we can be pretty sure that we are not at the tipping point yet.

This whole market is certainly a bubble. The question is how long can it be ridden upwards.

Indeed. It's a bit worrying, as the crash will be all the more harder. I guess it can't be helped though.

And BTW, even after the 80% Market cap drop some theorize will happen "soon", just like Amazon and others during the tech boom, the major coins that survive the collapse will reach new ATHs as they are integrated more fully into society.

So coins like Bitcoin, Ethereum, and sadly Ripple (very overpriced right now, but the banks support it, so it will stay) will be here for the long haul.

Being there for the long haul won't protect any coin from tanking hard though. Once the time comes, some coins will be hit harder than others, at which point we'll see how much of each respective price was real and how much of it was market manipulation and wishful thinking.

I wouldn't worry much, if you actually look at the numbers, you would see that we are still years away from being anywhere close to the peak of the dotcom bubble. Also consider that if bitcoin is the amazon of the dotcom bubble, bitcoin is still tiny to what it could become. As always, pics always work better than words so just look at this for some perspective:



So don't dump your bitcoin thinking it's over when we get to 6.7 trillion as a whole counting all crypto.

[littlebill16]

We have all heard that this is all a scam and what not. We all know its utter nonsense when people claim its a scam. Many folks compare bitcoin to the dot com era in the 90's and early 2000's. Do you think crypto currency is capable of reaching numbers as high as the ".com" numbers were? 

For me I can't see it reaching those heights, I feel like it's revolutionary but not nearly on the same levels. The main thing I think we can draw from the dot com bubble was that it was not really a bubble at all in fact. It just was a pump followed by a harsh correction due to large skepticism but since then it has risen dramatically.