Cryptocurrencies, ICOs and related derivatives are a potential dot com to the power of n bubble. The risk of economic collapse due to this market is real but underestimated.
The dot com bubble burst caused a significant regime shift in stock market dynamics and impacted their credibility.
It appears that regulators, investors and traders have already forgotten. The crypto markets are proof of short memory.
There is much publicity that these markets represent a technological breakthrough that will change the system for the better. This has probably rendered regulators unable to react so they are not accused of hindering progress.
But in reality these markets do not represent any breakthrough because they do nothing to change human nature. The only breakthrough that will make life better on this planet will be a change in human primitive instincts and those are subject to Lindy effect. A peer-to-peer network and cryptocurrencies are not enough to change anything along these lines.
In fact, we have seen that these new technologies have amplified greed and inequality with wealth transfer to a few that are up to speed with the technology. This is technological elitism and maybe the worst kind of inequality.
Dot com to the power of n means the impact of the coming bust will be devastating unless regulators act swiftly. Time is running out and FOMO is already dominating public psychology.
If you have any questions or comments, happy to connect on Twitter: @mikeharrisNY
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