Blockchain Bubble
I’ve been hearing many saying that the Crypto has been a bubble just like Dotcom Bubble — .
During Dotcom Bubble all major financial institutions had sold a variety of mutual funds consisted of publicly listed “dotcom companies”. Even commercial banks solicited their banking customers for those funds. “XX Growth Funds” loved seeing “.com” in the names of the companies they are investing in because that’s what their investors wanted to see in their portfolios. People also proudly spoke out “I’m in a dotcom business” or “I got a job in a dotcom company” etc. Dotcom businesses were way more saturated into the mainstream society and financial markets during and after the bubble.
Today, Cryptocurrencies or the “Crypto industry” doesn’t sound like it at all. People don’t care what “crypto people” are talking about, cannot relate what they are told about Cryptos to their lives. Some might say that the technologies enabling fundings outside regulatory are valuable while others even treasure “shadow” use cases, saying “decentralization”. But we hardly see any “bit company” or “bit business” creating meaningful utilities and values outside crypto communities — blockchain techs yes, but not Cryptocurrencies.
Bubble Happens on Businesses
A bubble economy grows within the regulated financial system in where everyone can start investing without much of legal hurdles and stresses. Before forming a bubble on Blockchain:
1) A rise of scalable public chain with almost zero usage cost must appear first.
2) Tsunami of app developments and businesses seen on the public chain next.
3) Many of those businesses become incorporated and some will start being listed publicly.
The world must realize the business utilities and potentials on the Blockchain before anything else, just like the Internet. Businesses like Email and Portal sites on the Internet were already huge before and during Dotcom Bubble.
No “Cryptos” Involved in Blockchain Bubble
Dotcom Bubble was all about the businesses built on the epic infrastructure. I believe past Railway Mania must have been the same in this sense. Today the both have brought drastic changes in mankind’s lifestyle, creating enormous business opportunities and values.
A lot of great technologies with the Blockchain can be the same but most people won’t know any of those crypto ticker symbols when a Blockchain bubble happens. People wouldn’t even know what cryptos are.
“Crypto bubble” is nothing like the Dotcom Bubble that I went through as an investor back then. Cryptos have been more like a fever on the tulip bulbs in the past.
