Bitcoin’s price is currently trading at $4,300, losing around 70% of its value from December, 2017. Analysts, bitcoin enthusiasts, and investors have frequently referred to Bitcoin as one of the biggest scams in history, comparing it to the Dutch Tulip fever in the 17thcentury, the World Financial Crisis of 2008, the UK Railway mania back in the 19thcentury, etc.
The dot-com bubble is one of the worst in human history, where all companies artificially benefited from having the .com in their name and website. Eventually, the bubble burst and more than $1.5 trillion was lost in value.
But according to an article from the Independent, the recent price drop of Bitcoin is not a bubble, although the price pattern resembles the one during the dot-com bubble. Just for comparison, after Bitcoin was trading at around $19,000 – $20,000 per coin a year ago, many companies and startups decided to add some “crypto” element to their corporate names and logos, which significantly boosted their share price. The same happened during the dot-com bubble.
However, while the patterns may be similar, the Bitcoin crash cannot be called a bubble, simply because the scale of the dot-com companies and the Bitcoin-related ones and investors are quite different. A bubble would affect the global economy to an enormous extent, reaching multiple economies and wiping off huge value of funds. And while the Bitcoin price is crashing currently, there is no sign that the price drop has or is going to cause a bubble burst.
According to Angel Versetti, the CEO of Ambrosus, a blockchain tech company commented that the short-term volatility in prices of the entire crypto market is far from forming a bubble. If the market cap of all digital coins reaches levels such as $15 trillion, for example, then the current price crash can definitely be called a bubble.
Despite the recent crash in prices, the blockchain applications continue to rise, as well as the Bitcoin applications. The State of Ohio just became the first US State to accept Bitcoin for 23 different taxes.