On the Edge of the Crypto Bronze Age
Most of my friends possibly know my enthusiasm about blockchain and the ecosystem it brings. Standing beside as a builder and an investor in this ecosystem, I will share my opinions and examinations here as 2–3 minute readings. Nothing in these constitutes any financial advice.
If you are reading about Cryptocurrencies, you might have heard about the comparison between the current status of crypto markets and the DotCom Bubble. It sounds nice. But let me give you some thoughts on why it is the correct par.
To understand today’s crypto environment, first, I will share some info about the dynamics of the economic situation back in the late 90s. Interest rates were respectively low, and keeping money in the bank with these rates made nearly no profit. Instead, smart money moved into growing tech startups like Pets.com, Webvan (grocery delivery), Amazon.com, theGlobe (social media), and more. As you noticed, only one of these examples is alive and known. Money followed the hype, but the hype did not follow the utility.
There were so few features on the internet, so few transactions, users, and utilities at that time. Don’t think about analytics, ads, or other services since it has not set even the internet essentials yet. Nevertheless, money kept flowing into tech stocks and caused over-valuation.
