The shitcoin craze is no different than the dot com bubble
https://ift.tt/JkjNy72
People would buy into the stupidest companies simply because they had a “dot com” and they had no idea what they were even buying. The same is happening with shitcoins just because they use buzzwords like “blockchain” and such. I expect only bitcoin (and *maybe* a few others) to survive just as Google and Amazon survived since they actually had a function.
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From [https://en.wikipedia.org/wiki/Dot-com_bubble](https://en.wikipedia.org/wiki/Dot-com_bubble) :
“As a result of these factors, many investors were eager to invest, at any valuation, in any [dot-com company](https://ift.tt/m6q25eN), especially if it had one of the [Internet-related prefixes](https://ift.tt/Pe4zFXH) or a “[.com](https://ift.tt/zEVvgLZ; [suffix](https://ift.tt/vaR2wNQ) in its name. [Venture capital](https://ift.tt/CGLrpez) was easy to raise. [Investment banks](https://ift.tt/ytzdbTa), which profited significantly from [initial public offerings](https://ift.tt/HWynpRY) (IPO), fueled speculation and encouraged investment in technology.[[12]](https://ift.tt/w1Ttvz4) ”
“Most dot-com companies incurred [net operating losses](https://ift.tt/JI3gmiy) as they spent heavily on advertising and promotions to harness [network effects](https://ift.tt/BIUuyGO) to build [market share](https://ift.tt/uNChx97) or [mind share](https://ift.tt/cOt5aJd) as fast as possible, using the mottos “get big fast” and “get large or get lost”. These companies offered their services or products for free or at a discount with the expectation that they could build enough [brand awareness](https://ift.tt/Wznc6ij) to charge profitable rates for their services in the future.[[19]](https://en.wikipedia.org/wiki/Dot-com_bubble#cite_note-lessons-19)[[20]](https://en.wikipedia.org/wiki/Dot-com_bubble#cite_note-20) ”
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The similarities are staggering.
Cryptocurrency
