2021-05-19 23:42:18
So crypto is tanking at the moment. Half the people out there are cheering on its fiery death, others are crying into their cans of Monster. Personally, I just trade bumps and squiggles on charts. I used to strictly trade penny stocks. I’m not the best at it, but I’m not shit either. For boths sides of this I will point out something that is worth keeping in mind. Buckle yourself in for story time.
Remind me, what was the 2001 stock market crash about? It is referred to as the Dotcom bubble. Some of you kids out there were probably born in the year 2001, but I was born in the 80s, so let me explain something to you. There was a time without the internet. There was a time without mobile phones. There was a time without computers in the home. And I can still remember this time.
I was about 8 when I used a computer for the first time in my parents home. Most people didn’t have one until I was about 12 to 14 but we had one because my parents ran a business. Windows didn’t exist, you used DOS wich is a direct command console like you see in Linux. You had to use that for everything in order to get the computer to use an .exe file. There was no internet then, not at the consumer level anyway, but when it came to us about 5 years later it was dialup, and you literally had to wait 2 minutes for a connection to be established with a box the size of a block of cheese that connected you via telephone line. It was slow as hell. This is the mid 90s and people were beginning to catch on to what the internet would actually mean for the future.
As people realised how big the internet was going to be the stonk market exploded to insane valuations and came crashing back down again as the scams were washed out of the market. Did the internet disappear though? Fucking lol. It has gone on to infiltrate every corner of our lives to the point where I cant even turn on my air conditioner without my wife getting a notification on the projector implanted in her retina.
I think bitcoin and the broader crypto market will undergo the same dynamic. Not every shitcoin you hold today will survive. Heck some of the shitcoins I was gambling with in 2016 didn’t survive. I don’t even know if bitcoin will survive. But it is important to understand the this volatility in the market at the moment is a result of broad scale adoption, hype and the interplay between one another. And the internet itself underwent a similar level of volatility in its valuation.
Bitcoins not dead. Its just gone to bed.
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