Q&A with Jonathan Cho continued
All markets are the same, in that they move in similar ways. They only really differ in the magnitude of the peaks and valleys that form, and in minor differences in the time durations of their respective bull and bear market cycles.
The comparison I made in prior articles could have been made with any other asset bubble, but I used the Dot.com bubble mainly for ease of comparison. Both the 90’s bubble and the current one are driven by emerging technologies, the internet and distributed ledger technology (DLT), that have fundamentally changed and are changing the world.
And, just as the 90’s bubble crashed without harming the future of the internet, the crypto crash occurring now shouldn’t compel people to think it shouldn’t be happening, just because they believe and understand that DLT has a bright future.
The direction of prices at any given moment do not necessarily point to the long-term sustainability of the technology underpinning that market.
Anything with a price attached to it will be subject to, and controlled by, the whims of human market behavior, from traditional assets like stocks and bonds, to non-traditional ones like cryptos and tulips.
This is not to say that cryptos will be as fleeting as tulips, but that those who proclaim that the crypto market is just “different” because it’s a “new” asset class forget that tulips were new as well, and you could chart its rise and fall just as you could any other asset, because again, it doesn’t matter what the asset is. People follow predictable patterns of buying and selling that repeat over time, with no exception.