Many investors compare today’s cryptocurrency craze to the 17th century Dutch tulip mania, in which rare, imported tulip bulbs commanded up to $750,000 in today’s money.
But according to Chief Income Strategist Marc Lichtenfeld in this week’s episode of State of the Market, the dot-com boom and bust is a more apt comparison.
While the dot-com bubble grew, investors rapidly embraced emerging technologies.
When it crashed, it took down the entire market. But not all was lost…
“After that bubble burst, there were still quality companies left that went on to become giant successes,” Marc wrote last week.
Now it seems as though the boom-and-bust cycle has come back around – this time with cryptocurrency.
Just as some internet companies fared following the dot-com bust, when the crypto bubble finally bursts, some of the more than 4,000 kinds of crypto that currently exist will thrive while others will face a reckoning.
In the meantime, prices could still rocket higher.
As Marc explains in this week’s episode of State of the Market, the key to success in the crypto sphere is the same as it was during the dot-com bubble…
Find companies that provide innovative technology and services to the crypto community.
“Use the dot-com boom and bust as your road map,” Marc says.
Even if you don’t want to take on the risk associated with playing coins directly, you can still take advantage of historic opportunities for profit.