"The $1.7 trillion dot.com lesson"
|Edgar Aronov 🦉||Aug 24, 2019|
Cryptoassets have shed over $600 billion worth of value in the past two years. Although it’s now recovering, it’s good to take a step back and look at similar situations from other areas.
Probably the closest one is the dot.com boom and bust, where stocks like Amazon fell 80-90% in a short time. A $1000 investment into Amazon in 1999-04-01 was worth $121 just two years later.
Most technology companies died during the bust. However, there was a few that recovered and produced a ton of disruption along the way.
With this, I’d like to share a fantastic article from the 9th of November 2000, which makes me laugh when I read it now. However, it probably wasn’t such a fun read if you were an investor during that time.
Read the full article here: https://money.cnn.com/2000/11/09/technology/overview/
Whenever a new technology has emerged, investors tend to overestimate it in the short term and underestimate it in the long run.
I believe the same goes with digital assets such as bitcoin and ethereum.
Here’s one of my most favorite quotes regarding this: