The mid-90s brought an intense spike in interest in the Internet, and many entrepreneurs saw – and cashed in on – the potential of a digital world. Investments in tech companies soared… and then the bottom fell out.
Some experts predict that we are now experiencing a cryptocurrency bubble. Interest in digital currency is exploding. There are those who claim it’s all a big scam (including Jamie Dimon, J.P. Morgan’s CEO, who called Bitcoin a fraud before admitting that he regretted his statement); and there are those, including Sir Richard Branson of the Virgin empire, who have invested heavily.
So who is right?
The digital currency market is volatile and filled with unknowns – and a few unsavory characters. But it’s a new era, just as e-commerce was not that long ago. If Amazon and eBay can weather the dot-com disaster, it’s because the world was ready for that model. Customers LOVE to buy stuff online, and that’s not going away.
The dot-com bubble was an evolutionary step. Smart investors knew that the future was e-commerce; and while many early start-ups didn’t have the technology to keep up with demand, the crash was beneficial in that it allowed the strongest to survive. One could say that the success of Amazon, eBay and other e-commerce giants is because of the dot-com crash, not in spite of it.
What does this have to do with cryptocurrency? The concept of digital currency is not going away. There will likely be a ‘culling of the herd’ – whether through a crash, or other shake-up – that will leave only the strongest cryptocurrencies as survivors.
It’s interesting to note, too, that cryptocurrency is a public entity, meaning it has nothing to do with venture capitalists, shareholders, or stocks.
Cryptocurrency may (and probably will) change drastically from what we have today, but digital currency is the future.
Investing In the Future
If you want to be part of that future as a relatively early adopter, how do you invest? First, consider risk. Immerse yourself in it. Observe the trends. Learn everything you can, especially from the mistakes.
It’s best to view cryptocurrency as a long-term investment. The more the world becomes reliant on e-commerce, the more it will come to rely on digital currency as well. Digital currency, as we know it now, is not set in stone. It’s still evolving and adapting, and entrepreneurs who have their fingers on the pulse – and an eye on the future – will have the best chance of surviving any upheaval