Mark Jeftovic sees similarities between cryptocurrencies in 2018 and the internet in 2000. The market crash in 2000 wasn’t the end of the world for the internet, and the current crash in cryptocurrencies won’t be the end of their world, either. From Jeftovic at guerrilla-capitalism.com:
The Gartner Group is widely credited with formulating the “Hype Cycle”, a trend curve that is said to model the adaptation of a new technology or paradigm.
Simply put it looks like this:
It certainly seems to have held sway regarding the Internet revolution, where the Peak of Inflated Expectations culminated in the Nasdaq blow-off-top of 2000 and the ensuing “Tech Wreck” crash. I remember that well, for a number of reasons including that my co-founders and I were still in “start-up” mode with our company, easyDNS. I remember profoundly misunderstanding what was happening in those final few months.
I remember thinking, literally “this is an entirely new economy, it’s not about running profitable businesses anymore, it’s about running up your stock price.” There was a Sun Microsystems commercial that was near music video length, set to the soundtrack of the iconic rock track “Hocus Pocus” whose sole call-to-action at the end of the ad was the “SUNW” ticker symbol. And then it all imploded. That was when I started seriously learning about economics, history and finance.
I remember sitting in a diner one night having a coffee with a friend, mere months before the crash. Bullshit .COM’s were getting funded all over the place and everybody else, except me it seemed, were becoming millionaires overnight.
“I suppose if we hit the jackpot and got rich tomorrow, I’d probably think I was a master of the universe and crash and burn with drugs and booze”, I conceded (having recently gotten clean and sober). He said “For that reason alone it’s probably best for you if you don’t become wealthy until your sobriety can handle it.” Then he told me the story of the Roman Triumphs, which I never knew about beforehand.
To continue reading: Welcome to Bitcoin’s “Trough of Disillusionment”