Does anyone remember the “dot-com bubble” of the late 1990s? It’s referred to often in discussions of Bitcoin. Critics of cryptocurrencies argue that like Bitcoin, the “dot-com bubble” was an economic bubble fueled by greed, irrational exuberance, and dumb investors. When the bubble burst at the turn of the millennium, many people lost a lot of money when those worthless, Ponzi-scheme-like businesses went caput. Stick with General Motors, General Electric, and other blue-chip stocks, we were told. Invest in real estate. Put your money in your 401(k).
Not so fast.
The tech we have today is a result of value that was inherent in many businesses that existed during the “dot-com bubble.” One of the best-known examples of the “dot-com bubble” was Priceline.com. It had Captain Kirk heading its advertising campaign, and happened to go public at the height of the bubble, offering stocks at $96 per share. The company offered travelers the opportunity to name their price and get a great deal on vacations. In one month, it shot to $974 per share — a 1000% return in one month. It added groceries and gasoline to its travel offerings in the hopes of going even higher.
After the dot-com bubble had burst and 9/11 happened, the travel sales business plummeted mightily. Shares deflated from nearly $1000 each to $6.60 each. Because of its precipitous fall and high-profile celebrity figurehead, it should be obvious why Priceline was synonymous with failed Internet businesses. But that’s not where Priceline’s story ends. In fact, its story is still going and is stronger than ever. Priceline didn’t go away. It persevered and today its stocks are each worth more than $1,800. That’s almost twice its pre-bubble-bursting high. True, the dollar has continued to decline in value since 2001, but not nearly enough to wipe out real gains from its low of $6.60 in 2002 to its current price of more than $1,800 today.
When it went public in 1996, Amazon offered its stock at $1.50. It made great gains right away. When the dot-com bubble burst, it crashed from its high around $80 per share down to less than $6 per share by 9/11. This is where critics of the “dot-com bubble” would say “ha ha!”
But that’s not where Amazon’s story ends. Until late 2009, its stock climbed but was still under its 1999 high of $80 per share. Then it started its steady climb to where it is now, well over $1,000 per share. I’ve criticized Amazon for its anti-white policies. However, there’s no argument whether an investment in Amazon — even during the height of the “dot-com bubble” — would have been a good investment if you had the guts to weather the storm of its temporary crash and years-long struggle to reascend the economic mountain. Today Amazon is one of a few tech stocks that is synonymous with wealth, influence, and safe investments.
Just because something looks like a balloon doesn’t mean that there’s nothing in it but hot air. The strong will survive, only to be tested anew every day to deliver more value than its competitors.
Pro-white Christians and Alt Right advocates should beware knee-jerk, contrarian reactions to allegations about Bitcoin being a bubble. The fact that many crypto newbies have and will stampede to the cryptocurrency space to speculate doesn’t change the fundamentals of the space. Do cryptocurrencies deliver value? Do they properly manage their operating funds? Do they respond to customer needs and changes in technology? Do they deliver on their promises? Ignore the herd mentality and look at the fundamentals. If we don’t, the Alt Right might miss out on benefiting from what could be a permanent shift in financial technology.
Everything you use to read, write, or watch things online today is a result of the “dot-com bubble.” Out of the ashes of disaster grow the roses of success. Many of the companies that failed gave birth to better companies that created better technologies, implemented better management practices, and did a better job of focusing on meeting customer needs instead of just manufacturing hype. The companies that survived did so by continually improving.
We could tell similar stories about Apple, FedEx, Reddit, Angry Birds, and even our President Donald J. Trump. Going through a very bad period of business losses means death to companies that can’t handle the adversity, can’t maintain cash flow, and can’t deliver real value to its clients. The ones that can, however, become the dominant ones in their fields. Failing in business or life is painful and can retard you for the rest of your life. It can also be a learning opportunity. The key is delivering value. The key is results that are sustainable, and adapting to new challenges while continuing to follow through on your previous commitments.
There’s no reason why Bitcoin or its altcoin colleagues can’t be a good source of investment, and real value, just as other forms of investment have been throughout history. There are hundreds and hundreds of cryptocurrencies now, with more added every day. I can safely predict that many of these altcoins will go bust because they do not deliver sufficient value, and therefore many people will lose investments in these cryptocurrencies. However, I predict that a greater amount of money will be made than lost in cryptocurrencies. There will be cryptocurrencies that survive and become dominant, and there will be cryptocurrencies that disappear along with their investors’ money. The thing that will divide the ones that thrive and the ones that die will be the same thing that made AOL.com rise for a time then disappear, that makes Google.com dominate at present, that made the Ford Pinto disappear and the Ford Taurus dominate for a time, that made the Spanish Empire rise and fade and the British Empire dominate for a time until it too was replaced by a superior empire.
Value.
So do your due diligence. Keep up with changes to the technology, and be attentive to your investments. Caveat emptor.
Be thou diligent to know the state of thy flocks, and look well to thy herds. For riches are not for ever: and doth the crown endure to every generation? The hay appeareth, and the tender grass sheweth itself, and herbs of the mountains are gathered. The lambs are for thy clothing, and the goats are the price of the field. And thou shalt have goats’ milk enough for thy food, for the food of thy household, and for the maintenance for thy maidens.
Proverbs 27:23-27
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