Bitcoin mania has reached a new level of insanity
You may have heard that many compare today’s blockchain revolution to the dot-com boom in the 90s. While we had the IPO craze back then, we now have a bunch of ICOs.
Well, yes, somehow they are similar.
Think about how many new companies in the 90s added “dot com” to their names solely for the purpose of perception, and their stock prices skyrocketed.
It is happening now in the ICO world.
The proof? These are the sorts of stories that perpetuate the belief that cryptocurrencies and “this blockchain thing” are nothing but bubbles waiting to burst:
Tea maker to become blockchain company. Stock soars.
http://money.cnn.com/2017/12/21/investing/long-island-iced-tea-bitcoin-blockchain/index.html?iid=EL
The blockchain craze has made it to hamburgers and chicken wings too.
Burger company launches blockchain rewards program. Stock soars.
http://money.cnn.com/2018/01/02/technology/burger-blockchain-rewards-crypto-currency/index.html
It's a wild wild world out there.
As a matter of caution, unscrupulous things happen everywhere, be it with IPOs or ICOs. Equipped with the right knowledge and enough amount of due diligence before you dive into anything.
There will always be a long list of companies that failed. It's survival of the fittest.
I have noticed that when trading these securities on days where bitcoin does well, you will make double-digit % returns with a lot of these stocks, but then as soon as a Bitcoin correction happens, you will lose the same. Not a great way to profit, but interesting nonetheless.
true and true
There is a correlation between Bitcoin and the most common cryptocurrencies (https://www.sifrdata.com/cryptocurrency-correlation-matrix/).
This correlation should be higher with ICO's due to their smaller market cap.