Why the crypto bubble will be much bigger than the dotcom bubble
The crypto bubble will likely end up inflating much bigger than that of the Nasdaq bubble in the late 90's.
Some say that the bitcoin/crypto bubble has already burst, falling from a high around $900 billion, down to the current level of around $200 billion.
However, last time I checked $200 billion was well above $0, which is where people would have you believe that crypto is currently by all of their "crypto is dead" claims.
Crypto and bitcoin will likely experience many boom and bust cycles on its way higher.
That being said, the next re-inflation of the crypto bubble will likely make the Nasdaq bubble look small by comparison.
Why do I think that you might ask?
For one simple reason...
The Nasdaq bubble was fueled mostly by wealthy Americans bidding up stocks. The crypto bubble is global in nature.
There are roughly 350 million people in American, while there are 7 billion people in the world.
Crypto is a global phenomenon while the Nasdaq bubble was mostly a US phenomenon.
Mike Novogratz of Galaxy Digital said something very similar when asked where he sees crypto going:
"[Cryptocurrency] is a global revolution. The internet bubble was only a US thing. It was rich US people participating. [Cryptocurrency] is global. There are kids in Bangladesh buying coins. It is monstrous in Tokyo, in South Korea, in China, in India, and in Russia. We’ve got a global market and a global mania. This will feel like a bubble when we’re at $20 trillion.”
The next surge will make the Nasdaq look small by comparison.
The Nasdaq peaked at around $3 trillion in value back in 2000.
Crypto peaked well below that recently, at around $900 billion.
However, this next surge, if it goes as predicted by Novogratz, will likely blow that $3 trillion number out of the water.
For all our sakes, I sure hope he is right.
Stay informed my friends.
Follow me: @jrcornel