Nov 22, 2018 06:50 UTC
Nov 22, 2018 at 07:13 UTC
CryptoOracle Exec Lou Kerner Compares Bitcoin with Amazon, Shuts Down Crypto Bubble Debate
Lou Kerner, an exec partner at crypto venture capital firm CryptoOracle, believes the current slump and free fall of cryptocurrencies in last week should not deter investors. He thinks the current trend in the crypto world is very much the same as the dot-com bubble in the late ’90s.
During an interview with CNBC, Luke tried to explain the volatility of the crypto market, comparing it to the dot-com bubble and companies like Amazon. He said people should view these cryptocurrencies like big brands which came into the picture during the dot-com wave.
Amazon went public in May 1997, when its price was $18/ share. By the end of 1998, the prices surged to $300/ share. However, when in March of 2000, the dot-com bubble came crashing down, the Amazon was trading at a mere $6 / share. Look at it now; it is arguably the most valuable brand on the planet and only the second company to join the Elitist club of $1Trillion in valuation.
An excerpt from the interview,
“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.”
What to Expect From a Volatile Market like Crypto
The recent slump in prices which saw major cryptocurrencies lose almost 22% of their market capitalization, Kerner does not seem to be worried. He explains the drop in prices are inevitable as we are nearing the end of the financial year. The good thing about the decline is, it has a steady path.
Kerner takes the example of 2013, where the prices fell by a massive 70% overnight. He believes the investors need to show more solidarity as being a new technology, the expectations are too high, thus the volatile nature. Every significant technological change is overestimated in the short term, while underestimated in long-term.
Kerner is of the belief that, BTC is overdue to become as big as Amazon and surpass the gold in terms of the stored value. When asked about the probable causes for the recent Bear Attack on the market, Kerner replied,
“crypto has been so weak because [for] most of it there is no underlying value outside of confidence.”
Many experts from the industry resonate with Kerner’s views and say BTC is a long-term investment. The technology is new, and that is why a little volatile, once the masses get to know and understand the potential, BTC will prove what Amazon did almost two decades ago.