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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.

To trade cryptocurrencies, sign up with BitMexor Binance!

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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Altcoins

KaratGold Proves Its Business Model By Providing Official Documents

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There has been a lot of renewed enthusiasm in the cryptocurrency market thanks mainly to Bitcoin’s strong move about 10,000.  Although Bitcoin continues to show its dominance, the altcoin market has yet to benefit from that rally.  A few of the largest altcoins remain popular but the rest of the market continues to lag behind.  In 2018, there was a lot of talk regarding a possible altcoin apocalypse where only the strong would survive.  That prediction appears to be playing out as expected.  Going forward, only the best projects that have a real world need will survive.  Crypto traders will have to spend a lot of their time doing proper research in order to find the best opportunities, just like in all financial markets.  One promising project that appears to have the makings of a future winner is KaratGold Coin.

KaratGold Background

KaratGold Coin is a cryptocurrency developed by the reputable German company Karatbars International, which maintains a leading position in the market of small gold items and investments. The project is part of a larger ecosystem, which involves several blockchain solutions that can be used for transactions, communication, investing and other tasks. During the past few weeks, however, the KaratGold ecosystem has been a target of unsavory scam allegations.  

Karatbars International and GSB Gold Standard Banking Corporation…

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SonicX and Dash Could Challenge Facebook’s Libra for Global Payments Market Share

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When Satoshi Nakamoto unveiled Bitcoin to the world, the dream was always for Bitcoin to serve as a new universal currency.  It would be free from the bureaucracy of governments.  And free from the tyranny of the old-world financial cartels.  Although the dream hasn’t yet materialized, it comes closer and closer with each passing day.

One of the biggest roadblocks for Bitcoin has been scalability.  At a speed of approximately 7 transactions per second, Bitcoin lags behind other cryptocurrencies like Ripple and global payment processors like Visa.  Many expect the lightning network to have a positive impact on Bitcoin’s TPS but until that comes to fruition, mass adoption will likely need another significant development.

Libra Currency Announcement

One development that could help pave the way toward mass adoption is the launch of the Libra currency.  Libra is expected to go live during the first half of 2020 according to Facebook’s June announcement.  According to Facebook, Libra will make sending money online cheaper and faster.  It will also have a hand in improving access to financial services, especially for the unbanked.  Given Facebook’s global reach, including many third world countries, providing financial access to the unbanked could provide a huge spark to global economies.  Additionally, it could provide the growth spark that cryptocurrency needs.

Facebook’s most popular messenger, WhatsApp, has approximately 1.5 billion monthly users.  This application is…

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Bitcoin

The rise of the crypto casinos

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In the hyper-competitive world of online casinos, operators are always looking for ways to stand out from the crowd. The most usual methods include using distinctive branding, offering generous bonuses and making sure that they are on all of the major so-called affiliate sites where players can compare and contrast casinos’ different offerings.

But now a whole new generation of casinos are starting to emerge – ones whose key difference isn’t what and how you play, but more in how you pay.

The rise and rise of the cryptocurrency casino is seen by many as the next logical step in a world that is slowly but surely starting to accept that Bitcoin, Ethereum, Ripple, et al. are certainly here to stay.

Of course, it’s the first of these cryptocurrencies that has really grabbed the headlines and led the way with its meteoric performance in 2017 when it seemed like its $20,000 value was just the start of the story. Admittedly, this was short-lived and the value quickly fell back to a more sustainable level but, if it achieved one thing, it was to cement this exciting new kind of currency in the consciousness of the general public.

Why Bitcoin and online casinos are the perfect partners

In many ways, it’s the perfect partnership between Bitcoin and online casinos with multiple benefits for both.

The first of…

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