The formation of bubbles and their bursting is a common economic phenomenon. Excess capital of a speculative nature can flow into any sector. At some stage the bubble bursts, which has a cleansing effect. Internet fever, also known as the dot-com bubble, refers to the period from 1996 to 2001, when Internet use increased massively. During this period, Internet companies boomed and then collapsed. The blockchain industry in many ways resembles the adoption of the internet in its early stages. New projects are being created daily. This is unsustainable in the long term and one can expect the blockchain bubble to burst. Every time the market capitalization of blockchain projects starts to fall for an extended period of time, people start to think it’s the end of the industry. However, the bubble has not yet burst. Why is it smart to think that Cardano will survive the bursting of the blockchain bubble?
TLDR:
- People and VC funds are investing in blockchain projects without the necessary knowledge.
- The market capitalization curve and adoption rate always follow the technology curve. No other combination works in the long run.
- Each blockchain project can be described through a collection of certain properties. These properties can be compared with other projects.
This article was prepared by Cardanians with support from Cexplorer.
Read the article: Cardano survives blockchain-bubble burst | Cardano Explorer