The dot-com bubble is often compared with the crypto crash of 2017. What emerged, however, from the dot-com bubble, was a real user growth, and the modern Internet as we know it today.
Could be the future of crypto, the history of the Internet currencies similar to? One analyst suggests that the Parallels are too obvious to ignore.
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What teach us the beginnings of the Internet
Analyst Anthony Bertolino believes that The rise of Google and the growth of Online users shows Parallels to our own time. In the early 2000s, the number of users in the case of Google had a direct relation to the share valuation of the company – and that will be the case of crypto-currencies in a similar way.
It is not surprising that users drive the growth and value of a particular platform or network progress. According to Thomas Lee, co-founder of Fund stepped in, “70% of the increase in the price of Internet stocks, simply due to the growth of the Internet”. And the Numbers speak for themselves. In just two decades, the number of Gmail grew users by 100 times. Shares of Google were recorded in this period, a return of 1,400%, says Bertolino.
In short, the use of the Internet, the increase in the price of Internet stocks reflected.
Are crypto currencies go the same way?
Are you asking yourself might include: the Same Will happen with the crypto industry? Fortunately, we have already some key figures – and the show: Yes, more users mean higher prices.
Consider, for example, Ethereum. In October 2015, the platform accounted for only a few thousand transactions. Now, in October, 2019, processed daily around 700,000 units. This is a 100-fold increase in only four years.
There is an even better indicator of the we future price movements on the User-base can keep track of: the number of new addresses. As Bertolino is on the basis of ether scan data graphically, it appears that the price of Ethereum, the number of new addresses fairly accurately reflect. In fact, the price of the number of new addresses is lagging behind currently, which indicates, probably, to the fact that the leading Smart Contract platform, is under-rated.
In a speculation dominated the market, these clear metrics give us new addresses, dApp activity and transactional output, real Standards, to assess the value. We are still in a largely speculative Phase.
The lesson you should learn is not to forget: what came after the dot-com bubble. At that time, the Internet was regarded as a kind of novelty, but in the end, it has changed our world radically. We are currently at a critical point in the history of crypto-currencies. We need to be aware that the most important metric is ultimately the users themselves.
Text Reference: Leg-Crypto, Anton, Lucian