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Blockchain Will Disrupt E-Commerce Posted on Aug 09 - 2018

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The winter of 2017 was spectacular for the cryptocurrency markets, which reached an unprecedented high. 2017 Google Trends indicated how hot Bitcoin was last year -- it was the second most searched topic under the global news category, while "How to buy bitcoin" was the third most sought-after "how to" question. Then, in an equally spectacular manner, bitcoin crashed and has lost 70% of its value ever since.

Today, the cryptocurrency is at $8,000. Does this ring a bell? It certainly takes you back to another boom and bust that shook the tech world and the financial market -- the dot-com boom and bust.

On March 10, 2000, the dot-com bubble had reached a crescendo. From there on the markets tanked. How far down did they go? Here are some examples: Cisco dropped by 86%. Qualcomm, which had grown 2619% in 1999, came crashing down as well. Their valuations were destroyed in the coming months.

By the end of the stock market downturn of 2002, stocks had lost $5 trillion in market capitalization since their peak. At its trough on October 9, 2002, the NASDAQ-100 had dropped to 1,114, down 78% from its peak.

There are important similarities between these two downturns. Consider what life was like in 1995. Big banks often asked engineers like me, "Why would a bank like us need a website?" They ridiculed engineers and technology enthusiasts as hype-mongers. By 1997, though, the dot-com boom had started changing the language of banks and businesses, and the internet became a tsunami by 1999. Like all tsunamis, the dot-com boom and bust left a lot of trash all over the market. Yet, the technology survived. Every bank and every other company moved onto the web. Just as the dot-com crash did not deter the march of technology, Bitcoin’s fall from grace won’t check the onward march of blockchain technology.

Blockchain is a digital ledger that is decentralized and secure, and we expect every industry to adopt some form of blockchain in the coming years. A Gartner forecast (registration required) says "the business value-add of blockchain will grow to slightly more than $176 billion by 2025, and then it will exceed $3.1 trillion by 2030." View More

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