As if the last few weeks were not bad enough, cryptocurrencies are re-tumbling since Friday’s close.
Once again there is no clear catalyst but headlines from crypto world include South Korean and Thai regulators preparing to unveil their crypto-tax proposals (and notably the maze of details surrounding US tax requirements for cryptos may also be forcing some unwinds to cover unforeseen ‘costs’).
The Kazakh National Bank has banned crypto-mining and The FBI has issued a warning regarding fraud and cryptos.
Bitcoin is now below $7,000 – a level it first hit in October 2017 – down 67% from its record high in December.
Ethereum is worse – down 75% from its highs and back below $400, this is the lowest level for the second largest crypto by market cap since November 2017.
While this collapse is very reminiscent of the dotcom debacle, CoinTelegraph’s Nikolai Kuznetsov sees innovation and sustainability.
While it is only prudent and smart for anyone entering the crypto space to proceed with caution especially when it comes to trading and investing in crypto assets, it would be unfair to be totally dismissive of what the Blockchain technology has brought about. The parallels with the dotcom bubble should serve as lessons to stakeholders.
One must remember that the aftermath of the dotcom bubble also affirmed that truly innovative organizations and technologies could weather the storm. Companies such as Amazon and eBay proved that pairing novel ideas with good business acumen can lead to success. Surely, the situation today with crypto and the environment of dotcoms from nearly twenty years ago would have their differences. Ventures must be able to navigate these nuances in order to make the best possible decisions moving forward.
Whether or not crypto ventures will share a similar fate to dotcoms remains to be seen. At least for now, crypto stakeholders have a chance to write a different story.