Many do not remember or even know about this, as the events took place back in the 90s. However, there was such a story – the dot-com bubble, which closely resembles what is happening in the cryptocurrency market today.
🔍 What happened in the 90s?
In the 1990s, the internet era began, and technology companies operating in the online sector rapidly gained popularity. Investors poured money into any business that had '.com' in its name, even if the company was not profitable. Nasdaq grew more than 5 times in just a few years!
🚀 Peak and crash.
In March 2000, Nasdaq reached its peak – over 5000 points, but then it crashed. Over the next two years, the market fell by more than 75%. Many companies that were worth billions disappeared. For example, Pets.com spent hundreds of millions of dollars on marketing but never became profitable.
The reasons for the fall were:
Excessive hype and speculation without real fundamentals.
High valuations of companies without a proven business model.
Excess liquidity that attracted irrational investments.
Tightening of regulatory policies after the first wave of growth.
Mass sell-offs of assets amid economic slowdown.
Doesn't it remind you of anything?
💡 But not everything is that bad!
A few companies survived the crisis and became giants. Amazon lost 90% of its value, but survived and is now one of the most valuable businesses in the world. Google, which emerged in the late 90s, also withstood the test and became a dominant player.
📉 Doesn't this remind you of the crypto market?
Just like in those times, we are currently seeing huge hype around crypto projects. Thousands of tokens, many of which have no real utility, are increasing in price solely due to speculation.$BTC , $ETH , $SOL and some other cryptocurrencies have real infrastructure and applications, but there are many projects that exist only through speculation.
⚠️ What will happen next?
Just like after the dot-com crash, only those with true value and technology will survive. Investors who make long-term bets on strong projects have a chance to replicate the success of those who invested in Amazon and Google at the time.
🔮 Conclusion:
History repeats itself. Although cryptocurrencies may experience booms and busts in the short term, in the long run, only the best will survive. Will it become #bitcoin Will the crypto industry be occupied by something else instead of «Amazon»? Time will tell.
What do you think? Is the crypto industry really experiencing its "dot-com bubble"? Share your thoughts in the comments! 💬
