Cryptocurrency investments are gaining popularity with speed and it has been compared to the Dot-com bubble of many years ago. The rise and fall of Dot-com cost a lot of people money. Everyone rushed into investing in doing business on the internet after which it crashed and burnt. Will the cryptocurrency market suffer the same fate? Will investors suddenly lose all their investments or will the market continue to thrive?
The Bubble Burst
If you’ve invested in cryptocurrencies or have been following up with the news in the cryptoverse, you may have heard that the market is a bubble waiting to burst. Most people compare cryptocurrencies, especially Bitcoin, to Dot-com. They claim that just like the Dot-com bubble blew and bust, Bitcoin is going to burst soon. It took only five years for Dot-com to reach its full potential before it finally bursts. Will Bitcoin suffer the same fate?
As technology advances, investors are eager to benefit from the boom. People have invested billions in initial coin offerings with over $10 billion being poured in just within the first half of 2018. People are still interested in investing in ICOs even with all the regulatory uncertainties attached to it.
What to Remember Before You Invest
Not every company fell when the Dot-com bubble burst. Strong companies like Google, Amazon, Apple, and many other strong contenders thrived after the bust while the weak ones with no real ideas fell. The lesson is to always invest in things that serve the purpose for which they were built. Don’t just throw your money into anything without doing due diligence.
If you invest in the right project, you’ll be among those who will benefit when or if the bubble finally bursts. A handful of cryptocurrency and blockchain projects will thrive, but a large percentage will most likely fail. Every business involves risks but make sure you minimise the risks by examining all the applications before you invest.