— Ian King (@IanKingGuru) January 9, 2018
There is no doubt that Bitcoin has reached a high point. In other words, it may be a bubble. It may turn out to be like the dotcom mania in the late twentieth century. Is that what is really going to happen?
Ian King says that Bitcoin can be likened to AOL, American Online. American Online created a revolution in the world. It allowed anyone to connect to the internet from a home computer and send emails instantly. AOL was the first in a whole chain of new companies that were created by innovative entrepreneurs who took their inspiration from AOL. Some of these worked out, and some did not. Pets.com was not the success it was thought to be, but Google and Amazon turned out to become the biggest companies in the world. According to Ian King, Bitcoin is forcing people to take a second look at how the financial market should operate and how banks and financial institutions should operate. There is no doubt that Bitcoin has led to other coins. Bitcoin no longer holds the majority of the cryptocurrency market. Bitcoin is causing companies to rethink their blockchain technology.
There are many other comparisons that can be made between the cryptocurrency industry and the dotcom mania. For example, ICOs and IPOs both are and were a central aspect of the manias.
Eventually, though, AOL went down. It purchased Time Warner, and the market peaked, but then it dropped. It is possible, says Ian King, that Bitcoin will see a similar drop. However, that does not mean that the cryptocurrency industry, in general, is doomed. Bitcoin has led the way for new ICOs to come out, and we just have to wait and see what survives and what does not.
Ian King also believes that the Bitcoin bubble still has room to grow. A drop does not mean anything. After the Bloody Sunday drop, prices rose again. As long as more and more people become interested in it, prices will rise again. Even if you do want to compare it to the dotcom mania, the fact is that the market cap of cryptocurrencies is far less than the dotcom industry was. It can still grow.