Investing in Bitcoin is like Investing in Microsoft and Amazon

The situation in the bitcoin market now looks a lot like big tech companies like Amazon and Microsoft 20 years ago.

The instability of cryptocurrencies has been confirmed again in the past few weeks. Just three weeks ago, many people thought that after bitcoin reached $8,400 in a few days, another serious bull market emerged. This growth has been warmly welcomed by crypto investors and enthusiasts from around the world who believe that the bearish trend that has dominated so far is finally over.

However, the bull market is short-lived, and now, in mid-August, Bitcoin is struggling again, with a serious threat of less than $6,000. Many believe that another decline may permanently damage the bitcoin currency and its struggle for dominance is finally over. If this happens, the coin will never reach its true potential.

Moreover, although the situation of Bitcoin is very bad, it is far less bad for the case of the altcoin. Although almost all of the cryptocurrency were green at the time of writing, eth coin saw a sharp drop yesterday and the day before. Ripple (XRP) has fallen by 93% from record height.

While many people have been trying to find the reasons behind this behavior, some people, such as Meltem Demirors, CoinShares' chief strategy officer, believe the problem is the lack of investors. This is especially true for institutional investors, because market behavior either prevents them from bringing money to the encrypted world, or they completely lose interest in it.

Demirors believes that this is because passwords are still primarily affected by their prices. Although prices do play an important role, factors such as currency goals and technology should also be considered. A great number of cryotocurrencies have enormous potential and can revolutionize many industries. However, since everyone only looks at the price, they never shine. Bitcoin prices are almost always affected by bitcoin behavior.

It is particularly difficult for new coins to be hit by a bearish trend. Blockchain startups wishing to launch their own coins through ICO can choose to sell their assets now and retain any funds they manage to collect, or keep their route and hope for the best. Obviously, this is not an option. It is definitely not the way that successful companies should take action in the future.

Although many ICOs are trying to raise funds through BTC or ETH, they are powerless to keep falling prices. Moreover, although there are some stable altcoins there, and in the long run, they can maintain their value, but there is also a major decision about which one can and should be trusted.

According to Demirors, this is very similar to the situation in the early 21st century, when Intel, Microsoft and Amazon and other revolutionary technology companies emerged. Although these have become large enterprises in the past 20 years, at that time, they are also trying to gain trust and the necessary funds. In the eyes of investors, the latest bitcoin historical data is much of importance.

In addition, all those who decide to support them must wait for nearly a decade or more to see their return on investment. Waiting for a return, they are now very wealthy, but at the beginning of these companies, the risks are huge.

Demirors also said that new technologies, especially those that have the potential to change everything we know today, often take a long time to be understood and accepted. Obviously, with the introduction of cryptocurrency, this change is even greater, because we have used physical funds for thousands of years. Now, suddenly, the digital currency is trying to take over. Although it does have many advantages, accepting such a big change is not an easy task, especially for the older generation that is currently underway.