In the 1920s we had a major bubble in automobile companies. So, any company with the name Motor would go crazy & we had hundreds of auto companies. All these bubbles have Kernel of Truth. Kernel of Truth at that time was that the horses’ history. That was true. In the 1960s there was the ‘Tronics’ boom. If you have a company name ending with ‘…tronics’ it got a spectacular evaluation. And again 2000s it was dot com. Anything that ended with ‘.com’ got boomed. Again kernel of truth. Now we have crypto. New cryptocurrencies are created every hour. So, let us dig into this issue with past patterns.
Why the 1920s had an automobile bubble. But why was there a bubble though because everyone saw that automobiles were gonna change the world. It is as obvious as daylight. They were so much easier to use than a horse & a cart. You can travel much further much faster it’s much more comfortable. That was the kernel of truth. So, everyone wanted to invest in the auto industry. They wanted to make money. However, most car companies bankrupt like Auburn, Cole, Davis, King, Black Crow, Flcar, Mercer, etc. These don’t exist anymore.
In the 1960s we saw a very similar pattern. Any company that ended in ’….tronics’ attracted a huge amount of investors. They thought that semiconductors, cables, and transistors were going to change the world & this was true. However, most of these companies failed & investors lost their money.
In the early 2000s familiar story but it was the dot com era. People knew that computers, phones & internet would change the world as we knew it. As we all know it did. You’re reading this article by using the Internet. However, most internet companies failed. Only a few like Microsoft, Apple & Amazon got through & they did transform the world. Broadcast.com, pets.com, Northpoint communications, Napster none of us know what these companies are because they all went bust as did most dot com companies.
Cryptocurrency we all know will change the world & the way we use money. However, this does not mean that most cryptocurrencies will thrive. Every day we hear new cryptocurrencies which are the next ones to buy. But most of these cryptocurrencies are scams, useless & may be wiped out from the market in the next few years like motors, electronics & dotcom eras. Only the best-performing cryptos will last.
