Since the entry of Bitcoin, a lot of people have made predictions stating all cryptocurrencies will “soon” collapse. The movement of cryptocurrencies has been likened to international events such as tulipmania, the 1929 stock market collapse and the dotcom bubble. Yet following the recent drop in crypto prices, new investors are still entering the market.
Yoni Assia, CEO of trading platform eToro this time around is using the dotcom bubble similarity. Yet, rather than criticizing the technology, Assia has selected a various path. According to Assia, 90 percent of the crypto startups will “end as nothing” yet he is sure that these startups have a larger platform compared to that of the dotcom bubble.
From 1995 to 2000, many people invested a great deal in “.com” firms which were usually created without the right business models. In recent times, people can create new ideas that can be recorded on a whitepaper for the whole world to read. Given that these creations are creative, wealthy investors invest in initial coin offerings (ICOs). Regardless of the fact that if 1,000 of the investors invest $10,000, the overall project can gather $10 million in a short period of time.
Assia went on to compare blockchain to that of the internet. “Telsa made 2,000%, Facebook made 1,000%, Google made 1,000%. This is the same thing but earlier in the cycle,” Assia noted.
Following the launch of iPods, iBook and updating the Mac OS from 20001 to 2005, Apple’s stock began to rise steadily. Presently, Assia notes that investing in crypto us a choice people need to make on their own.
“My long-term view is selling crypto now is like selling Apple in 2001,” said Assia, “You do it if you have to do it, you don’t do it if you don’t have to do it”.
Assia can to the conclusion that once someone gets to know about blockchain technology, they want everyone to be part of it. As a matter of fact, blockchain offers transparency and decentralization, which when used in medical and engineering industries and electoral systems, can solve various issues. Blockchain supporters are making all efforts to update this technology to bring these ideas into reality soon. But until this happens, we will just have to be on the lookout for which crypto companies will be worth the investment.