Bitcoin has had a few interesting periods where prices plummet and things look pretty gloomy. However, even when the bear cycles are terrible enough to worry even the most passive investors, the coin still finds its way out and begins to surge again.
Bitcoin’s penchant for a healthy rise after a terrible fall is significant because such speed is largely unusual in traditional markets. Bitcoin’s recovery from its bearish times has recently been compared to Amazon’s surge cycle at the time of the dot com bubble. This comparison was made by Messari, the crypto analytics firm.
Bitcoin Surge Bigger than Amazon’s
Ceteris Paribus, another analytics firm, recently highlighted this comparison made by Messari, in a recent tweet. Posting a graph of the BTC/Amazon comparison, Ceteris Paribus expressed that:
“The latest $BTC cycle mirrors $AMZN during the dot-com bubble, but the recovery has been much more swift. Even with the recent sell off, Bitcoin is 54% down from its high, vs. the 85% Amazon was trading at over a similar timeframe.”
Continuing this comparison, Ceteris Paribus further explained the similarity between both assets, as dissimilar as they fundamentally are, is the fact that the two of them “both traded on pure speculation”. Setting $BTC well ahead, the tweet further said:
“Bubbles follow similar patterns, but the quick $BTC breakout has been extremely bullish…[and] still much further ahead than most people imagined in Dec.”
More Dot Com Era Comparisons
Ceteris Paribus and Messari have noticed some similarities between the crypto market and the dot com bubble but others have also drawn a few parallels. Expert trader and analyst, Peter Brandt, also recently compared the altcoins, to a crash during the dot com bubble.
According to Brandt, Bitcoin would continue to rally but unlike the usual occurrences, the altcoins might not rally along with it. Brandt said:
“Following 2001-02 tech collapse, dotcoms with real value exploded. The ‘alt’.coms went bankrupt.”
Another comparison was recently made by Blockstream CEO, Adam Back. Speaking on June 26 at a panel during the San Francisco Bitcoin 2019 conference, Back – who also invented the hashcash Proof-of-Work (PoW) system which was applied to the algorithm used in Bitcoin mining – pitted Bitcoin and the earlier days of the internet together.
According to him, there used to be something called the “internet time” which was used to describe the period in the early dot com era where there was a lot of new innovation happening very fast. However, Back has said that Bitcoin “seems to be moving even faster.” He believes that:
“Bitcoin has come much further and much faster than people expected.”
Back in April, a crypto payment processing frim known as Moon, made an announcement letting users know that shopping on e-commerce platforms like Amazon, is now possible.
According to the announcement, shoppers can use any lightning-enabled wallet to shop on these sites, using Moon’s browser extension. Moon already facilitated crypto shopping on e-commerce sites before using Lightning by making a connection between the extension and exchanges like Coinbase. Ken Kruger, Moon’s CEO, spoke on the extension and how it works. According to him:
[It] will pop up a QR code and it will have the lightning invoice, which you could also copy and paste if you can’t use the QR code for some reason, and you’ll be able to pay with your favourite lightning wallet.”
Kruger however explains that Amazon doesn’t receive Bitcoin. However, the Bitcoin is converted to fiat with help from some unnamed financial institutions, allowing the sellers on Amazon receive their funds in fiat.
Bitcoin’s price is $10,622.52 BTC/USD exchange rate today. The real-time BTC market cap of $189.34 Billion currently ranks #1 with a chart dominance at 65.70%, daily trading volume of $10.74 Billion and live coin value change of BTC 8.55 in the last 24 hours.