Ben Horowitz at the TechCrunch Disrupt event stated that the rate of cryptocurrency scam should not deter interested investors in the industry, while he compared the nascent cryptocurrency industry with the dot-com industry while budding.
Cryptocurrency and Scams
The fortunes amassed by the nascent cryptocurrency industry has made it a den for persons of questionable characters. This has led to the formation of different fake cryptocurrency firms and fraudulent Initial Coin Offerings in the cryptocurrency space.
Holding cryptocurrencies offer affluence because of its inherent benefits. However, dubious means of obtaining cryptocurrencies from holders continue to trend in the cryptocurrency community.
The unfortunate trend has led to many losing their life savings to dubious schemes in the cryptocurrency space. This has caused a disinterest in cryptocurrency to some individuals and countries. Notably, some countries adopt blockchain technology, the underlying tech of cryptocurrency, saying no to cryptocurrencies because of its vulnerability to scam.
Despite the trend of cryptocurrency scams, some optimists in the crypto space continue to make investments, reaping its dividends.
Ben Horowitz’s Thought On Cryptocurrency Scam and Investments
The co-founder of giant venture capital firm Andreessen, Ben Horowitz while discussing at the TechCrunch Disrupt stated that the cryptocurrency community at large should not be discouraged from investing in cryptocurrencies at the moment.
This he stated while noting that someone at his office said that not all ICOs are bad, but all bad companies have an ICO. He further stated that the statement reminded him of the dot.com era which most young cryptocurrency investors might not recollect. During the period, he said that bad companies renamed themselves to get associated with dot.com.
Unfortunately as Ben noted, things went by, with lots of complaints after falling for scam schemes during the dot.com era. This made some discouraged, leaving the industry, while the sector later grew from a $10 worth to over a $100 billion in some couple of years. The same thing applies to the cryptocurrency industry; he says as the nascent industry is still evolving. Therefore, investors should not be discouraged from believing the best of cryptocurrencies.
As earlier reported, the striking thoughts of Tim Draper, a highly influential billionaire venture capitalist, on the future market capitalization of cryptocurrency is worth pondering upon. Tim noted that market cap would hit $80 trillion within the next 15 years. This projection makes investing in the cryptocurrency industry at the moment one of the best decisions that could impact the future financial security of many positively.