Lou Kerner, a partner at venture capital firm CryptoOracle, took the opportunity during an interview with CNBC on 21st November to explain why we should look at the current state of the crypto market as being similar to what happened around the dot-com burst in the early 2000s.
Kerner stated that strong coins should be looked at in the same light as the big companies that came out of the dot-com bubble, using Amazon as an example.
As he pointed out, when Amazon went public in 1997 its shares were priced at $18. Within a year, the share price leapt to $300, but in March 2000, just after the dot-com ‘bubble’ burst, Amazon’s share price was under $6. However, look at Amazon now — it has a market value of $1 trillion.
This same scenario may come true for the crypto market as well. Kerner claimed in the programme that Bitcoin is “the greatest store of value ever created,” adding that the leading cryptocurrency will surpass gold over time. Interstingly, when asked what was causing the present market conditions, he said, “crypto has been so weak because [for] most of it there is no underlying value outside of confidence.”
Others share Kerner’s view. Bart Smith, digital asset head at US -based global trading and technology firm Susquehanna, takes a positive long-term view of digital assets, and firmly believes that crypto trading is a long game and that “every great idea is volatile.”
Similarly, Spencer Bogart at venture capital firm Blockchain Capital also believes that the opportunities for crypto remain “gigantic.”
Tom Lee, the bullish founder of Fundstrat, is still maintaining his belief in digital currencies and refuses to revise his predictions about the potential value of Bitcoin, even in the face of market difficulties.
As always, there are differences of opinion on the topic, but it while there may not be an exact parallel between the growth years of the Internet and the emergence of crypto assets, there are certainly some great similarities, which is encouraging for those of us who believe in the future potential of the technology.