So, what do you think will happen from here with bitcoin?

We’ve already seen a massive crash, and the cryptocurrency seems stuck around the $8,000 mark, after reaching $6,630 recently.

But I don’t think this crash is done. I expect we’ll see bitcoin ultimately lose well over 90% of its value before rallying again longer term.

Then it’ll be the buy of the century… just like the internet stocks were in late 2002 after a similar, dramatic 16-month bubble and then a 93% crash.

I know this because I’ve studied ALL the great bubbles throughout modern history.

The first was the Dutch Tulip bubble in 1636. It was based on the first futures markets in agriculture, and tulips were the glory hound.

Stocks emerged with the first trading company, the East India Company in England, which started trading publicly in 1612. It wasn’t long before the South Seas Company emerged and became the first great stock bubble in history (1711 to 1720).

And there was the Mississippi Land Company in France, which fueled a greater bubble because it was powered by the first central bank. The bank was John Law’s solution to paying off the huge debts from wars with England. Basically, France offered low-cost financing from the government for “swamp land” in America.

There have been many major bubbles in history. This chart below shows the most B.S., and hence the most extreme, ones.

As you can see, bitcoin is the biggest of the lot!

The 1920s bubble in the U.S., the 1980s bubble in Japan, the 1990s bubble in tech stocks, and even the gold bubble into 2011… were based on strong fundamental trends that were exaggerated by investors’ “animal spirits.”

But the Tulip, South Seas, Mississippi, and now bitcoin bubbles were ALL largely just B.S. They had little by way of fundamentals backing them. That’s what made them the most extreme in history.

At its peak, the bitcoin and cryptocurrencies bubble surpassed even the infamous tulip bubble.

Interestingly, the bitcoin bubble seems to be following the same path as the Mississippi Bubble. In the former, investors clambered after shares in unseen American swamp land. In the latter, investors are buying unseen bits and bytes up in droves!

If bitcoin continues to walk a similar path, we could see it drop to around $3,000 later this year and as low as $800 per coin down the road.

It’s not all bad though…

Bitcoin is an early indicator for a major surge ahead in blockchain technologies… which are real and should grow dramatically into at least 2036, on an 18-year lag of the early internet bubble into 2000.

This industry is going to be forced to go to “security” tokens, or regulated investments in companies.

Then it will be real.

When that happens, most companies won’t pass muster!

That’s when you swoop in and buy the surviving companies, like Ethereum, that have real block chain applications.

The opportunity here is not on the upside, but the downside… as blockchain technologies will make the internet cheaper, faster – and most importantly – more secure!

Blockchain is the answer to the limitations of the internet.

But bitcoin and most cryptocurrencies are B.S., as investors have no interest in the company and its future profits. It’s a way to raise money at low costs and no regulations.

For now, bet on the dollar – the best house in a bad neighborhood – and then wait to pounce on the opportunities coming our way.


Follow Me on Twitter @harrydentjr

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Harry Dent
Harry S. Dent Jr. studied economics in college in the ’70s, but found it vague and inconclusive. He became so disillusioned by the state of his chosen profession that he turned his back on it. Instead, he threw himself into the burgeoning new science of finance where identifying and studying demographic, technological, consumer and many, many other trends empowered him to forecast economic changes. Since then, he’s spoken to executives, financial advisors and investors around the world. He’s appeared on “Good Morning America,” PBS, CNBC and CNN/Fox News. He’s been featured in Barron’s, Investor’s Business Daily, Entrepreneur, Fortune, Success, U.S. News and World Report, Business Week, The Wall Street Journal, American Demographics and Omni. He is a regular guest on Fox Business’s “America’s Nightly Scorecard.” In his latest book, Zero Hour: Turn the Greatest Political and Financial Upheaval in Modern History to Your Advantage, Harry Dent reveals why the greatest social, economic, and political upheaval since the American Revolution is on our doorstep. Discover how its combined effects could cause stocks to crash as much as 80% beginning just weeks from now…crippling your wealth now and for the rest of your life. Harry arms you with the tools you need to financially prepare and survive as the world we know is turned upside down! Today, he uses the research he developed from years of hands-on business experience to offer readers a positive, easy-to-understand view of the economic future by heading up Dent Research, in his flagship newsletter, Boom & Bust.