Leader in bitcoin news.
Bitcoin
$8,311.16
-350.37
Ethereum
$161.71
-6.26
Ripple
$0.22
-0.01
Litecoin
$54.54
-3.75
EOS
$3.52
-0.15
Monero
$62.05
-3.05
Stellar
$0.06
-0
Cardano
$0.04
-0

Dot Com Vs CryptoBubble: A Look at Human Psychology and the Future of Bitcoin

All financial markets are cyclical, including the cryptocurrency market. The price action of assets such as Bitcoin, Ethereum and even traditional assets such as stocks or commodities is determined by a complex balance of supply and demand, but also by the psychology of the participants in each market.

A comparison between the dot-com-era boom of late he years and the crypto-hype bubble end 1990 shows how similar Human psychology can be on the markets and may give an insight into the long term future of Bitcoin.

Market psychology in comparison: crypto versus dot com bubble

It is not uncommon for today’s crypto market to be in the early 696 years compared to the dot-com bubble , Both were emerging technologies that offered untapped potential and promises and that took the whole world by storm.

Investors flocked to emerging brands that pushed up the price of stocks like Amazon long before the online bookstore became the far-reaching digital brand it is today.

Compared to Bitcoin, Amazon’s stock performance during the dot-com bubble shows a similar market structure driven by speculation and thus emotional and psychological investor sentiment.

The common graphs show that human psychology rarely changes, and so markets typically behave similarly. As with Amazon, as long as the underlying still has value, the asset can recover after a long period of consolidation.

Remember Amazon vs. Bitcoin bubble pop tweets?

Human psychology and it is not changing or whatever. pic.twitter.com/iwHBiQYjAY

– Charles (@CharlesTheETH) November 4th 2019

Amazon: A Look into the Future of Bitcoin?

At the dawn of the Internet, during the dot-com boom, there was a similar phase to the ICO era Internet companies were a dime, each offering a different promise for future breakthroughs in technology and user experience.

However, the majority of companies died during the collapse of the dot-com bubble and only a few, such as Amazon, survived. But even Amazon was once nothing but a digital bookstore and not the digital powerhouse that it is today.

If Bitcoin tracks the same pace as Internet usage, What happens with such a use with the Bitcoin course, everyone can imagine for themselves. There were even times when the internet – like Bitcoin – was seen as a mere fad.

Text Proof: newsbtc

Last update: Tuesday, November 5