The Crisis Forms Diamond — Crypto Is In The Early Middle Of Its Connectivity Phase
The cycle happens in the technology field every 10–15 years. From computers in the 1980s, the internet in the 1990s, the dot-com era in the 2000s, the mobile internet in the 2010s, and blockchain in the early 2020s. This post will take the Dot-com bubble as an object to scrutinize and link it to the crypto state currently. The bear market is a great market to jump in.
Dot-com Bubble — Story & Lessons
During the late 1990s bull market, the dot-com bubble was a fast surge in U.S. technology stock equity prices spurred by investments in Internet-based companies. Between 1995 and 2000, the value of equities markets expanded at an exponential rate, with the technology-dominated Nasdaq index growing from under 1,000 to over 5,000. Things began to shift in 2000, and the bubble burst between 2001 and 2002, resulting in bear market equities.
The bursting of the dot-com boom was directly responsible for the stock market crash of 2000. It popped when a large number of technology businesses that had raised money and gone public folded because capital went dry.
Many investors suffered significant losses as a result of the bubble, and several Internet companies went bankrupt. Amazon, eBay, and Priceline are a few of the companies that made it through the bubble.
What are the lessons here?
1. The BUIDLERs are built in the bear market: We can clearly see the bubbling effect forms from a phenomenal emergence. What makes that thing “hot”? It’s the potential of the technology. When the angel investors see the future of technology, the builders believe they can build up a superb world with that technology, they pursue it. When the market gets pumped, many scamming ones emerged, but the natural filter function of the market will do its job. After the bubble bursts, only the strong enough companies remain and even thrive. Hence, the real BUIDLERs are formed in the bearish market. Just stay hungry, stay foolish, and don’t quit.
2. Only quality projects/businesses can survive the crisis: Yes, because of the dignity of real BUIDLERs during the downtrend market, the project they built will surely survive after the crisis. No matter what, if they offer true values, the values they receive will stay true to their effort.
3. Smart investors are those who remain faithful in the market (even invest in it during bearish times): Making the investment decision in the bear market is a challenging choice as it’s hard to filter out the good projects to put money in. However, detecting those potent models, following and supporting them, may lead investors to the peak of success as those could be future unicorns. a16z is the leading VCs in web3 fund right now, it believes in the potential of future technology and has announced a $4.5 billion web3 fund in the midst of the crypto market’s turbulence.
Crypto Is In The Early Middle Of Its Connectivity Phase
The cycle of 10–15 years of technology has indicated a point that technology always bears the potential in it, but everything takes time to prove to the public, and so does crypto. The current Bitcoin crash, LUNA fell, and the unstable market has scared people without much experience in this field that crypto is going to die. However, in the report on the crypto state in 2022 of a16z, crypto, blockchain, and web3 are concluded in the early stage of them.
We’re gaining more and more users every day, the bullish and bearish market will happen regularly as a natural selection to help filter out the poor-quality project. We’re creating a link between the crypto and non-crypto worlds. The non-crypto world recognizes the value of crypto and invests in or builds the infrastructure needed to access it. New use cases are attracting new people, ranging from NFT art communities to gaming to web3 social networks.
As the general public becomes more interested in crypto, competitive pressure streamlines the user experience and lowers the barriers to entry. Over the next decade, the number of users and developers who have access to crypto will expand by 10–100x.
All in all, no pressure, no diamonds. This period of time is the golden time for all buidlers to build something great. And something great can only be defined at this stage. The true values remain strong!
“The smartest VCs talk up a downturn but continue to invest.”
Watch what they do, not what they say. Most of the big players have war chests to invest in, and also the ability to move markets with their messages. The tourists and pretenders leave when they read “RIP Good Times”.
Let’s do a game-changer with UMBΛLΛ MΞTΛVΞRSΞ
