Prominent VC advisor, Lou Kerner, has stated that if there is any form of similarity between the current crypto market drop in prices and that of the infamous dot-com crash of 2000, Bitcoin (BTC) will then emerge to be the ‘Amazon’ of cryptocurrency.
Bitcoin, the ‘dollar of the cryptocurrency market,’ has seen its price drop drastically since mid-November due to investors pulling out as a result of panic concerning the recent Bitcoin Cash fork. The pioneer cryptocurrency, which possesses the lion share of the market capitalization in the cryptocurrency market, has experienced a 77% loss from its all-time high recorded on December 17 last year.
Current Crypto Market in Relation to Past Markets
The VC advisor said that those who held Bitcoin over long periods of time always reaped the benefits with a considerable amount of ROI. These statements are given now the whole crypto market is experiencing a loss in market capitalization. He compared the current decline in the market to the internet dot-com bubble in 2000 which saw a period of speculation and boom of stocks of internet-based companies. The bubble burst in 2000 when stocks crashed, and even Amazon, whose share price is currently at a high $1,516, experienced a drop to $9 from its $100 value at the time. Kerner talked about the volatility of the crypto market and stated that;
“There was a day in 2013 when we were down 70 percent overnight. Nobody likes being down like this. But this is what investing in crypto is all about.”
Coincidentally, Mati Greenspan, Senior Market Analyst at eToro published a tweet showing the 2000 dot come crash and stocks of some tech companies then. The biggest success after the then crash, Amazon, has become the second most valuable company in the world today, outranking even Microsoft.
Several crypto critics and even enthusiasts compare the market to the dot-com bubble. What is particularly interesting between the two groups is that the critics claim that Bitcoin and other cryptocurrencies as rightly predicted, is a bubble and the opposing group claims that the adoption and widespread use of the internet today is an indication that cryptocurrency will be massively adopted in the nearest future.
The Imminent Future of Digital Currency
Kerner stated that the recent crypto market drop was basically as a result of the non-generation of utility with trading in the crypto space based off of speculation only. He, however, also stated that Bitcoin was going to be the new gold. According to him, the dominating cryptocurrency is the “the greatest store of value ever created.”
Famous crypto analysts like John McAfee continue to say that the volatility in the market is normal and not new to the crypto world, and Fundstrat co-founder, Tom Lee, still reiterated that Bitcoin could hit prices of $15,000 before the year runs out.