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Hackernoon logoCrypto Was A Bubble, But So Was The Internet by@FrederikBussler

Crypto Was A Bubble, But So Was The Internet

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@FrederikBusslerFrederik Bussler

Democratizing data science.

From Forbes to Nobel Prize winning economists, the consensus is the same: Crypto was a speculative bubble. After all, crypto's crash was worse than the dot-com one.

When crypto is described as a bubble, it's usually in a markedly negative context, as if it being a bubble was a bad sign. When George Soros described Bitcoin as a bubble, he also said dictators will use it to store value. When Paul Krugman described crypto as a bubble, he also said crypto was a "nifty trick" with "no intrinsic value at all." When Nobel Prize winner Angus Deaton described crypto as a bubble, he also said it's only good for "criminals."

But The Internet Was Also A Bubble

Two decades ago, the Internet experienced the same phenomenon. Doubters and naysayers claimed the Internet would catastrophically collapse, and that it was a bubble. They were spot-on with the bubble prediction, as Internet companies did catastrophically collapse after the dot-com bubble, but today, the Internet is ubiquitous in the exchange of digital and physical goods, information, and online platforms.

An MIT Sloan article predicts that blockchain "could become ubiquitous in the exchange of digital and physical goods, information, and online platforms."

Just become an asset is a bubble doesn't mean it lacks potential.

The Internet is the perfect example to disprove the idea that just because an asset is a bubble means it has no value.

Crypto naysayers are just as caught up in the hype as someone like John McAffee, who claims that Bitcoin will reach $1,000,000 this year. One side is just incredibly optimistic, while the other side is incredibly pessimistic, but both are clouded by emotions without taking an objective view of the actual developments in the space.

These developments are countless, with companies from Walmart to Goldman Sacks to Maersk, alongside over 80 other corporate giants, working on blockchain projects.

Ultimately, there's one takeaway, regardless of which side of the table you're on: Crypto being a bubble is neither an argument against it nor the underlying technology, it's just a reflection of human behavior, similar to the Internet two decades ago.

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