How cryptocurrency bubble is different from the dotcom bubble (p.5)

The same but different

The public always draws a direct comparison between crypto and dotcom bubbles. There are certainly good reasons for doing so - both industries are backed by promising modern technologies which are not easy to evaluate monetarily right away. Like we said in preceding articles, bubbles are commonplace in any market, take a look at S&P 500 index, for example. No matter what, the conditions have changed and 2018 is not 2002 and thus, we are not in the position to take the dotcom bubble as a legit metric for comparison. Let's take a look at the main differences between the two:

First and foremost, there's an apparent, time-tested proof that crypto market is faster, more volatile. In dotcom bubble, there was the company called WebVan that lost $700 million in one day - what they call the WebVan's doomsday. But it is no way near the Ripple's doomsday of January 8th, 2018 when it lost $25 billion in valuation.

The reasons behind this extent of volatility are and an easy access to the markets and worldwide availability by means of the Internet. Also, a huge number of exchanges, both centralized and decentralized, with fees and without, like VHCEx. They, in turn, make it possible for traders to catch arbitrage opportunities. Market manipulations are a commonplace too, thanks to the lack of proper securities regulation in that space. Whales can enter even small altcoin markets and easily affect the price and devastate the coin's market cap.