CryptoOracle Venture Capital Partner Compares Bitcoin To Post Dot-Com Amazon Bubble
Venture Capitalist Firm CryptoOracle’s Lou Kerner recently made an interesting comparison. In an interview with CNBC during its Worldwide Exchange segment, he compared cryptocurrency’s current decline to the internet bubble in the early 2000.
He added that well-performing coins should be treated like big companies that survived the internet bubble, most notably Amazon.
In his words,
“If you go back to the internet bubble, which is what a lot of us in crypto look at for direction, Amazon, arguably one of the greatest companies in the history of the mankind, was down over 95 percent over two years.”
In 1997, Amazon launched publicly and had a share price of $18. By the end of 1998, the company’s share price skyrocketed to $300 per share and this was all before the end of the dot-com bubble in March 2000. After the bubble, the price decreased to $6 per share. Even then, Amazon still was able to survive, regain its footing, and to develop a market value of $1 trillion.
Kerner stated that today’s volatility is miniscule compared to longtime BTC investors’ experiencing. At one point, the bitcoin market had fallen by 70 percent overnight.
“This is what investing in crypto is all about.” Kerner also stated that technological changes tend to have the biggest impact, but still, such changes are overestimated over the short term and over the long term, they are underestimated.
He also affirmed his belief that Bitcoin is,
“the greatest store of value ever created” and that it is poised to surpass gold’s value with time. Kerner also argued that “crypto has been so weak because [for] most of it there is no underlying value outside of confidence.”
Industry experts have also exhibited a positive view of the crypto market’s future. Digital asset head at Susquehanna, named Bart Smith, also stated he believes that trading in the BTC realm is a long-term thing and that “every great idea is volatile.”
He is not the only one to have such a belief. Spencer Bogart of Blockchain Capital also mentioned that he believes that crypto opportunities are “still gigantic,” and that BTC has the “largest established network effect [and it is] more than five times larger than the number of two crypto.”