If you are among those who are bothered continuously by Bitcoin volatility that keeps you from investing in it, macroeconomist Riggs highlighted a now renowned Silicon valley giant’s dismal market performance, back in 2000-2002, when nobody believed at the time that it would emerge as one of the greatest entrepreneurial ventures of all times.
It would come as a surprise to some that the customer-obsessed Seattle-based American multinational company, Amazon, who is also a part of the Big Four tech organizations including Apple, Facebook and Google, was not always at its mightiest best since its launch. Amazon, like a dozen other tech behemoths, has had its share of ups and more importantly, significant downs.
Bitcoin volatility still a concern? Take a look below
According to a recent Twitter post by a macroeconomist and an avid asset trader and investor, Riggs, firms like Amazon, Cisco and Yahoo, which are now considered yardstick of entrepreneurial success, witnessed over ninety-six percent (96%) plunge in their stock prices in the early 2000s.
Many people try to talk negatively about Bitcoin volatility, meanwhile Amazon, Yahoo, and Priceline all COLLAPSED over 96% back in 2000 before minting millionaires.
Early tech volatility is natural. Long term upwards volatility is the holy grail.
Get used to it. pic.twitter.com/JuCWMd1RKA
— Riggs (@RiggsBTC) December 15, 2019
The user also added that Amazon stock price, the now trillion-dollar worth company with shares worth over one thousand seven hundred US dollars ($1770) experienced a steep decline from seventy-five US dollars ($75.25) to just five US dollars ($5). The user further went to congratulate those who held on those worthless stocks at that time as little did they know about the company’s imminent prosperity.
The tweet also points us towards another question. Why is Bitcoin volatility questioned and condemned, labelling it as a warning sign, when other established tech companies have experienced a similar trend pattern previously? Riggs is of the opinion that volatility is given when it comes to tech company stock prices, and such should be the notion with Bitcoin as well.
Is Bitcoin the next Amazon?
According to Riggs, tech companies like Amazon and Yahoo were undeterred by these setbacks in the early stages. That and along with the fact that they are centralized organizations with set goals and objectives would have probably made it even more challenging to convince their investors and stakeholders. Even then, they continued to prosper.
On the other hand, asset class like Bitcoin, that thrives on decentralization and is not answerable to any stakeholders or ownerships, still continues to be labeled as scam. People fail to understand that Bitcoin’s success story is eventually in the hands of the ever-increasing number of investors and no one else.
Bitcoin’s inspiring journey, from a mere thousand dollar asset to twenty thousand US dollars ($20,000) in 2017, is often put in a bad light by famous economists like Nouriel Roubini, who dismissed it as the biggest scam ever.
No doubt, the Bitcoin price is volatile. It also has had a close shave with a ninety percent (90%) plunge, just like Amazon. However, its price has been on an upward trajectory, mostly. And that is the ultimate goal of any tech innovation, Riggs points out.
It is important to note that Amazon, formed in 1994, and Netflix, founded in 1997, took two decades to reach where they are today. Bitcoin, on the other hand, has been around for ten years only and even then it shows signs of a far more stable investment when compared with these two.
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