The current bear market had some people believe that investing in crypto is not the right thing to do.
Let’s take a walk down memory lane to another emerging sector, the internet sector, where companies like Amazon were down 93% a year into the bear market. Many experts and investors left the sector thinking that the bear market will never come to an end. Years later things started improving and the sector came to life. It was a long journey from the dotcom bubble to where we are now.
Looking back at Amazon that went public at $18/share then peaked in late 1999 at around $90/share and in two years time was at a $6/share mark. It took Amazon a few years and a lot of work to get to the $1,500/share, making Amazon one of the largest companies by market value.
A similar thing happened to Bitcoin when it dropped around 80% down in 2015 to $200. Despite the fact that crypto didn’t go “to the moon” this year, we know that the current bear market isn’t the first for crypto, and most likely won’t be the last!
The period between 1999 and 2002 was a true test for investors’ faith in tech startups. Some companies stopped existing, while others were off to a great success. The problem back then was that most of the companies spent their money on marketing and didn’t pay enough attention to the actual product they were developing.
Governments were blamed for neglecting greedy speculators and working ineffectively, similarly to what we’re seeing today in the world of cryptocurrency. Regulators can’t keep up with all the technology development, but given the speed of market development, regulatory authorities not only need to do something, but they need to do it fast.
Amazon worked hard and made history evolving dramatically over the years, generating billions of dollars in revenue. Their stock price history is probably one of the most impressive over the past two decades. Some of the investors that held on to their Amazon shares through all the ups and downs, bears and bulls, are now sitting on an impressive return, for some extremely lucky investors a life-changing return.
While the drop from $90/share to $6/share looks painful, you can barely see it on the chart now. Amazon not only survived the dot-com bubble but became so successful we almost forgot that the bubble burst ever happened.