What the dot-com bust can teach us about the crypto crash According to Cointelegraph

What the dot-com bust can teach us about the crypto crash

Economist Benjamin Graham, known by some as the father of value investing, once compared the market to a voting machine in the short term and a weighing machine in the long run. While Graham would probably be skeptical of cryptocurrency and its built-in volatility if he had lived to see it, his economic theory still applies to some aspects of it.

Since the advent of altcoins, the blockchain space has mostly functioned as a “voting machine”. Many projects in general have been unsuccessful financially, even to the detriment of investors and the space in general. Instead, they have turned crypto into a memo popularity contest, and their success on that front can hardly be underestimated. Sometimes that competition is based on who promises the best use case in the future – but whether that future actually comes is another matter entirely. Usually, it’s based on who markets themselves best, through complicated-looking infographics or ridiculous token names and a bunch of related “dank” memes. Whatever it is, the success of most projects is based on speculation and very little else. This is what Graham referred to as the “voting machine.”

Axel Nussbaumer is the vice president of digital asset management at Blockmetrix, a mining company based in Dallas. Before becoming an entrepreneur in 2015, he studied business at Southern Methodist University and worked for a private equity fund based in Texas. In 2016, he shifted his focus to blockchain technology. His early interest and involvement in this space has resulted in many successful investments and brings a wealth of experience and knowledge that he has imparted in publications such as Nasdaq and Forbes.