Bitcoin (BTC) and the cryptocurrency market in its entirety have long been touted by traditionalists as bubbles. This may be true to an extent — if you’re only looking at late 2017 and the beginning of 2018, then yes, crypto certainly behaved like a textbook bubble. However, when zoomed out on a macro trend, it’s clear that Bitcoin has been trending upwards since its release, with only corrections along the way.
Image Source: https://www.coinigy.com/s/i/5cb75c8799675/
Crypto Rewards Will Be Far Greater Than Post-Dotcom Bubble
Whether Bitcoin’s corrections are classified as bubbles is up to interpretation. Either way, Bitcoin and crypto have offered investors significant rewards time and time again. And one cryptocurrency proponent, Vinny Lingham, believes the rewards from crypto are just getting started.
Lingham, the co-founder and CEO of Civic, recently took to Twitter, where he compared the crypto market to the traditional markets and the dotcom bubble/bust cycle. He explained that the crypto economy is allowing new products and services to be built that could never be financed by traditional means (equity, VC, debt, etc.).
As a result, Lingham says the rewards from crypto will be far greater than those seen during the dotcom bubble/bust cycle. He proclaimed that the crypto winners will reap far greater rewards than the FAANG companies, referring to Facebook, Apple, Amazon, Netflix, and Google, the top 5 best-performing technology stocks.
That being said, the rewards will likely be far greater than during the dotcom bubble/bust cycle, where the winners (FAANG) are now among the biggest companies in the world. Interesting point to note though, was that there was only one dotcom bubble.
— Vinny Lingham (@VinnyLingham) April 14, 2019
Security Tokens Will Evolve the Crypto Markets
Following the aforementioned tweet from Lingham, he tweeted again, highlighting that while there was only one dotcom bubble, crypto has already seen and recovered from many bubble formations. However, Lingham believes that as the crypto market matures and moves towards things like security tokens, the crypto bubbles will disappear.
He said that bubbles are unlikely to form in those sub-asset classes, adding:
“As the crypto industry evolves, I think we can expect security tokens to begin to hit the mainstream as alternative ways to finance network effect opportunities that can provide yields to investors, which will complement or enhance some of the existing utility token models.”
Do you think security tokens will evolve the entire crypto industry so much so that we will see the end of bubbles? Are security tokens all that they’re hyped up to be? Let us know what you think in the comment section below.
