I remember back in the 1990s when any company that had a dot-com associated with its name had their stock sore to new all-time highs. Valuations were absurd, but it made no difference, people were buying just off hype and the possibilities of what the adoption of the internet could bring to society.
However, the hype could not last forever, in March of 2000 I was working on the equity options floor of the Pacific Stock Exchange, when out of nowhere the tech boom unexpectedly came to an end.
An unprecedented amount of dot-com companies had burned through all their money and stocks started to plummet.
Suddenly, internet companies had nowhere to run, anyone and everyone with a dot-com after their name had their stock sink to unprecedented lows.
Even companies that were doing things right got crushed due to association. Amazon was trading over $100 at the end of 1999, only to fall to below $6 by 2001.
As painful as that might seem, it’s important to remember that Amazon was far from alone during this tumbling period. eBay, Cisco, Qualcomm, and hundreds more all got decimated.
But what most people didn’t realize is that it was the most significant buying opportunity anyone had ever seen.
Someone could have bought a 1000 shares of Amazon at the 2001 low for only $5510, which would have a value today of nearly $1.7 million. OUCH!
Although Amazon is undoubtedly the most well-known today, there were hundreds of buying opportunities that would have made investors rich over time.
Why is it when prices are high, and everything seems good, people are fighting hand over fist to buy, yet this would seem like a good time to sell. And why is it when prices are at all-time lows it’s hard to find buyers anywhere? Wouldn’t this be where the real wealth is built? Yet it seems to happen over and over again.
We all know the basic economic principle of buying low and selling high, but somehow insist on always doing the opposite.
What about the 2008 to 2010 real estate crash, when property values sank to unprecedented lows? Property could have been picked up for pennies on the dollar compared to just a year earlier, but most people were too scared to buy and let the rare wealth-building opportunity get away from them.
People who bought real estate from 2009 to 2010 made out like bandits. They bought at the absolute market low and had their pick of any property they wanted without a bidding war.
The people who bought the tech stocks between 2001 to 2003 got rich, even the smallest investment in the right name built incredible wealth for its investor.
Unfortunately, most people reading this were likely not in either group. That’s because only the financial savvy investors take the time to make these connections and pounce on the opportunity while it exists. The rest let the opportunity pass on by only to be scratching their head later and wondering why they did not take action.
It’s always been like that, and it will always be like that. People naturally want to buy at the top and sell at the bottom, while the educated investor is always there to help them out and take the other side of that trade and their money.
Just like the dot-com bust and the housing crises eight years later, the cryptocurrency space is going through the same thing right now.
Cryptocurrencies exploded in 2017 on mostly hype and the possibilities of what this amazing technology could do, but 2018 rolled around and reality set back in.
The fact is no one’s talking about buying cryptocurrencies anymore, just like how no one was talking about internet companies in 2001, or real-estate in 2009.
As a successful financial analyst, investor, and someone who bought both tech stocks in 2001 and property in 2009, I see that cryptocurrencies are approaching their bottom and the turn around is going to be counted in weeks not years.
This is not a guess, I see several things that are happening or about to happen in the space and the economics of these factors are going to push cryptocurrencies forward once again.
I would like to pat myself on the back and claim I see something no one else has, but that’s hardly the case. The fact is, the big banks and other educated investors all see exactly what I see and are ready to swoop in and take their chunk of the market just like they have always done before.
Names like Amazon, eBay, Match, WebMD powered out of the dot-com crash to obtain massive success and lead the way of the future. Names like Pets.com Webvan, Boo.com, and many others crashed and burned and eventually went out of business.
The same thing will happen in the cryptocurrency space. The companies doing things right will prosper, and the long-term gains will be almost unimaginable. The projects who mismanaged their funds, which unfortunately is most, will struggle to push their project forward and will likely run out of money and cease to exist, resulting in heartbreak for their investors.
Fortunately, I have been studying which projects have been doing things right and are expected to survive this latest downturn, eventually far exceeding their previous highs.
Remember, we are still very early in cryptocurrency technology with only 3% of the world owning crypto. Just imagine what’s going to happen once mass adaption pushes forward. We have not even begun to see what a world with crypto will look like, just like we had not begun to see what an internet-driven economy looked like in the 1990s, which means the bulk of the money is still there to be made.
The fact is, I expect most people to do nothing and let this rare opportunity pass them by, that’s the way it’s always been and will always be. But for the rare few that wish to break the mold and take part in this next revaluation of technology, you’re now on the clock.
The primary driver of this latest cryptocurrency bear market will be coming to an end over the next several weeks, during this time I will be releasing my top blockchain projects that are best positioned to take advantage of the quickly approaching bull market economic factors. For those looking to start trading cryptocurrency for profit click here to get in-depth research and instant market updates.