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Investing in Bitcoin is like Investing in Microsoft and Amazon in 2000

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The situation regarding the Bitcoin market right now looks a lot like the one surrounding big tech companies like Amazon and Microsoft 20 years ago.

Crypto market struggling again

The unstable nature of cryptocurrencies has been confirmed once more in the last few weeks. Only three weeks ago, many believed that another serious bull run is afoot after Bitcoin (BTC) hit $8,400 in a matter of days. This increase was warmly welcomed by crypto investors and enthusiasts from around the world, believing that the bearish trend that has dominated the year up to that point was finally over.

However, the bull run was short, and now, in mid-August, Bitcoin is once again struggling, seriously threatening to go under $6,000. Many believe that another drop might permanently damage BTC, making its struggle for dominance finally over. If that were to happen, the coin would never be able to reach its true potential.

And, while the situation with Bitcoin is bad, it is nowhere near as bad to the situation of the altcoins. While almost all cryptos are in the green at the time of writing, Ethereum (ETH) has seen a significant drop yesterday, as well as the day before. Ripple (XRP) has gone down by 93% from its record height.

While many have been trying to find a reason behind this behavior, some, like CoinShares’ Chief Strategy Officer, Meltem Demirors, believe that the issue lies in the lack of investors. This is especially true when it comes to institutional investors, since the market behavior either discourage them from bringing money to the crypto world, or they completely lose interest in it.

Demirors believes that this is due to the fact that cryptos are still mostly valued by their price. While the price does play a significant role, things like currencies’ goals and technology should also be taken into consideration. A lot of cryptos have a huge potential to revolutionize numerous industries. However, they can never properly shine since everyone are only looking at their prices. Prices that are almost always influenced by Bitcoin’s behavior.

The new coins are hit by the bearish trend especially hard. Blockchain startups that are hoping to launch their own coin through ICOs have a choice to either sell their assets now and keep whatever funds they manage to gather or to stay their course and hope for the best. Obviously, this is not much of a choice, and definitely not the way that future successful businesses should be acting.

While a lot of ICOs are trying to raise capital through BTC or ETH, they can’t do much with the prices constantly dropping. And, while there are somewhat stable altcoins out there, and they can preserve their value in the long run, there is also a big decision regarding which one can and should be trusted.

The history repeating itself

According to Demirors, this is a very similar situation to that in the early 2000s, when revolutionary technology companies like Intel, Microsoft, and Amazon appeared. While these have become megacorporations in the last 20 years, back then, they also struggled to gain trust and necessary funding.

Additionally, all those that did decide to support them had to wait for nearly a decade or more to see returns on their investments. The wait paid off, and they are all rich now, but at the beginning of these companies, the risks were huge.

Demirors also stated that new technologies, and especially ones that threaten to change everything that we have known so far, often take a very long time to be understood and accepted. Obviously, with the introduction of cryptocurrencies, this change is even bigger, since we have been using the physical money for thousands of years. Now, all of a sudden, the digital money is trying to take over. And while it definitely presents numerous advantages, accepting such a large change is not an easy thing to do, especially for older generations that are currently still calling the shots.

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Disclaimer: This article should not be taken as, and is not intended to provide, investment advice. Global Coin Report and/or its affiliates, employees, writers, and subcontractors are cryptocurrency investors and from time to time may or may not have holdings in some of the coins or tokens they cover. Please conduct your own thorough research before investing in any cryptocurrency and read our full disclaimer.

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Bitcoin

Investors Beware: Another Large Bitcoin Crash Might Be Coming

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The crypto prices have surged quite high in the last few months. Of course, their progress is nowhere near the one seen in 2017, but they appear to be getting there, one day at the time. However, things might not be as simple as that, and according to recent performance — it is more than possible that a major Bitcoin crash is incoming.

The fact is that cryptos saw a massive amount of growth in a very short period. Bitcoin itself more than doubled its price in only two months. Now, the rally is starting to crash in on itself, and the coin is already about $1,000 lower than last week. If such development does come to pass, a lot of people will experience quite large losses, although experienced investors might find some opportunities, and leverage in order to enhance their holdings’ long-term value.

For example, Bitcoin dominance is expected to crash very quickly, which will work in favor of quite a lot of altcoins. While this does not seem to be the best time to invest in BTC, altcoins are another story, and diversifying a portfolio now might end up being very profitable in days to come.

Bitcoin behavior mirrors the pre-bear market situation

The crash that analysts are predicting right now comes as a direct consequence of all the hype that has been building up in…

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Bitcoin

The Bitcoin Revolution: Everything You Need To Know To Take Profits

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Bitcoin is soaring high in the cryptomarket once again, and experts are expecting a return of the bullish trend of 2017. The current Bitcoin price is $7,615 as of 23 May 6:56 AM UTC. This significant jump comes just six months after the Bitcoin price plummeted to a low of $3150 in December 2018. Since then, Bitcoin has experienced steady growth and gain in the market. However, in the last 30 days, the Bitcoin price peaked to $8,320.82, its highest price ever. This phenomenal jump occurred in a span of only 10 days breaking the Bitcoin record so far of significant gains made in short time frames. This positive growth has led to experts forecasting the Bitcoin price to hit the $20,000 mark by the end of this year.

Since entering the market almost 11 years ago, Bitcoin is still at the top of the global cryptocurrencies list. The current circulating supply of Bitcoin is at unbelievable 17,708,875 BTC. The market trend of the Bitcoin price has remained positive even when the currency did not maintain an uptrend. Cryptocurrency researchers believe that Bitcoin has the potential to grow up to a high of USD 50,000 within the next two years.

How to Profit from Bitcoin…

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Altcoins

3 Altcoins That Are Outperforming Bitcoin and Will Likely Face Consequences

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The crypto market is going through a period of massive recovery in the past few months, which has caused the investors’ optimism to return. While all eyes are on Bitcoin (BTC), as usual, the largest coin seems to be struggling with a major resistance level at $8,000 at the moment. While this level was breached a few times now, every breach resulted in a correction.

At the time of writing, BTC is approaching this level yet again, with its current price being at $7,985,79, and rising further. The price managed to grow by 1.06% in the last 24 hours, and will undoubtedly hit $8,000 in a matter of hours, if not sooner.

However, while Bitcoin continues to remain volatile and struggles with waves of growth and decline, there are some altcoins that are not following its path. Of course, most of them are performing in pretty much the same manner as BTC, as they always had. But, a few coins have actually managed to outperform Bitcoin in recent months.

While optimists believe that this might lead to decoupling from Bitcoin — something that only Binance Coin (BNB) managed to pull off up to this point — it is likely that there will be consequences for these cryptos. This likely means that a price drop for these specific coins awaits somewhere in the near future, as outperforming BTC…

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