Lou Kerner, a partner at venture capital firm CryptoOracle, compared to the current slump crypto market and the dot-com bubble burst in early 2000-ies.
On CNBC’s “Worldwide Exchange” show, Kerner said that the most popular cryptocurrency should be considered in comparison with the large companies that survived the dot-com bubble. As an example, he cited the famous shopping platform Amazon.
"If you remember the dot-com bubble, you can find a lot in common with the current situation around the cryptocurrency. Amazon, arguably one of the greatest companies in the history of the mankind, was down over 95 percent over two years".
Amazon came to the stock market in the spring of 1997 and offered its shares at $ 18 apiece. In winter, the value of one share of the company amounted to more than 300 dollars, but in early 2000, when the dot-com bubble burst, it dropped to $ 6. However, Amazon still managed to become the second American company whose market value surpassed one trillion dollars.
Kerner said the current volatility of the cryptocurrency market is not so terrible compared to the circumstances faced by bitcoin investors in 2013, when the value of BTC fell by 70% in one night. He also added the impact of all great technological changes is overestimated in the short term and underestimated in the long term.
According to Kerner, Bitcoin is the greatest means of accumulation in history, surpassing even gold. When Kerner asked about the causes of the decline of the cryptocurrency market, it is speculated that this happened due to the lack of intrinsic value of many cryptocurrencies.
Some industry experts have shared a positive outlook regarding the future of crypto market. Bart Smith, digital asset head at U.S.-based global trading and technology firm Susquehanna, said that still believe in the potential of Bitcoin.
The same projections and gives Spencer Bogart, a partner at the venture capital firm Blockchain Capital. He adheres to the "mono-crypto" position and believes that Bitcoin is the largest formed network that is five times as much Ethereum, the second most popular cryptocurrency.