Since the rapid increase of various crypto-currencies such as Bitcoin, Ethereum and CO, prophesied of the various people that either, the entire market explode or will collapse. The Trends of the crypto-currencies have been compared with global results, such as Tulip mania, the stock market crash of 1929 and the Dotcom bubble. However, even after the recent drop of the crypto-prices of the crypto world continues to attract new investors. We take a look at the possible reasons.
STOCK MARKET VS. CRYPTO-MARKET
The stock market and the crypto market are almost two sides of the same coin. Because on the stock exchange the people could actually invest in the company and on the crypto-market in the technology or in any Token or Coin.
In the crypto market, the impact of the investments are directly proportional to the overall assessment of the crypto market. No one can really see how high the accumulated market capitalization of the crypto-market. The crypto market is growing much faster, but it is also much more volatile. That is, prices rise faster, but also much faster.
Recently, the Bitcoin has fallen for the first Time in 2018 under the 4000$ mark. At the time of this writing, the Bitcoin, according to Coinmarketcap again at a price of 4322$. The entire crypto market has lost since the Reaching of its Zenith, more than 650 billion dollars in market capitalization. This is one of the facts, which of various people as an Argument is used, a correlation between the crash of the stock market in the year 2001 and the current Situation in the crypto-market. In this stock market crash namely 2001, shares are broken into courses by companies such as Amazon and Apple etc to 97%.
Of living abroad and Whistleblower Edward Snowden said that the Bitcoin market will disappear, crypto-currencies, however, generally remain the same.
In an Interview with Ben Wizner, Director of the ACLU Speech, Privacy and Technology project, said Snowden to be more precise:
“The basic idea of crypto-currencies is to transfer a daily basis enormous amounts of money electronically, without the involvement of banks, all over the world. One day, Bitcoin will be gone, but as long as there are people, money without banks, want to move, will be crypto-currencies likely to remain in place“.
In the month of June 2018 Yoni Assia, CEO of the trading platform eToro was compared, a fall in the price of the crypto-market with the dot-com bubble.
What is the Dotcom bubble?
The Dotcom bubble resulted from a too rapid growth of the US markets, which was triggered by investments in Internet-based companies during the bull market in the late 90s. During the dot-com bubble, the value of equity markets grew exponentially, with the NASDAQ Index between 1995 and 2000, rose from under 1,000 to over 5,000.
The Explosion of the bubble, which is referred to as the Dot-Com Crash, held from the 11. March 2000 to 9. October 2002. During the crash many Online shopping companies like pets.com, Webvan and boo.com as well as information companies such as Worldcom, NorthPoint Communications, and Global Crossing broke. The shares of other companies (such as Amazon, Apple, and Cisco) have declined dramatically, survived and recovered quickly.
The total Market capitalisation of the crypto market
At the moment, the crypto-world is in a bear market. The total market capitalization fell from 820 billion dollars to 125 billion dollars.
From 1995 to 2000, many investors have invested in the so-called “.com“ companies, which were predominantly constructed without conventional business models. Nowadays, individuals or companies can make their concepts in the Form of a white paper, for the whole world to understand, and then through an ICO (Initial Coin Offering) investors ‘ funds to collect. An example of this is the Swiss SEBA Crypto AG. The Startup has raised $ 103 million of investors funds by the ICO, to establish a crypto-Bank. Since April, the company is in contact with the Swiss financial authority.
Disclaimer: Because of the buying and trading crypto-currencies with a significant risk of loss goes hand in hand, we speak of crypto Ticker not a recommendation to buy. Please inform yourself thoroughly, comprehensively and, above all, independently from various sources that you trust before the acquisition of a crypto-currency
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