Is Bitcoin bursting the dotcom bubble as it once did? This comparison has long been widespread, but now an economist is giving the all–clear – although he also expects such a dramatic event.
Crypto is the Next Big Thing
The businessman and author Robert Kiyosaki recently asked the economist Harry Dent Junior about the further economic developments that the USA, but also the entire Earth, will experience.
Dent represented clear points of view – also on the subject of Bitcoin and cryptocurrencies. He is best known for his book The Great Depression Ahead, which he published in the year of the founding of Bitcoin, as well as for a financial newsletter, which he markets with his company HS Dent Publishing.
Most recently, Dent made headlines as he warned investors in January 2022 of a particularly strong crash in the financial markets. Since then, the consumer price in Germany has risen by over 37 percent and the bear market has reached extreme proportions.
BTC is almost 69 percent away from its all-time high today. Nevertheless, Dent is a staunch supporter of cryptocurrencies – in particular, the market leader Bitcoin.
It’s the next big thing!
Explains Dent and thus addresses the crypto market. He, too, draws comparisons to the infamous dotcom bubble. These are quite appropriate, but not necessarily worrying.
Bitcoin is bursting? Is the best chance to get started imminent?
But Dent can certainly explain his all-clear. In the cryptos, he sees the digitization of various assets and thus also extremely great potential. The fear that a bubble is currently forming in the crypto market, Dent apparently considers realistic.
There were similar developments in the 1990s. At that time, the Internet was considered a promising investment. At the top of the dotcom bubble that burst in 2000 was Amazon, which is now one of the largest companies on Earth.
Amazon led the bubble and crashed by 95 percent!
Neither for Amazon, nor for the Internet, this meant death. In the crypto market, Dent expects a similar event, only this time Bitcoin is at the top of the bubble.
Bitcoin is the Amazon of the crypto market.
The bursting of the crypto bubble will also hit the Bitcoin price hard – just like with Amazon, but only temporarily. Subsequently, Dent expects an extreme price growth. For all those who have missed their opportunity to invest so far, the time would then be given.
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Is the crypto bubble a danger?
What Dent does not mention: place such a bubble, it inevitably comes to dislocations. Not every company survived the dotcom bubble. In the same way, the bursting of a crypto bubble would also cause an increased extinction of industry representatives.
The last few months have shown impressively how quickly bankruptcies can occur. Meanwhile, lending giant Celsius and hedge fund 3AC are illiquid and threatened with liquidation.
For early Amazon investors, the stock could prove profitable in the long term despite an extreme slump in 2000, provided that the shareholders did not realize any losses. The same fate awaits Dent for Bitcoin holders. Which cryptos he additionally gives confidence is not discussed.
Dent was made aware of the potential of cryptocurrencies by a spectator at one of his own conferences and has been a staunch supporter ever since.
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