Partner at venture capital firm CryptoOracle compares Bitcoin to Amazon, surviving the dotcom bubble
Lou Kerner, partner at venture capital firm CryptoOracle, compared the current decline in virtual currencies to the bursting of the dot-com bubble in the early 2000s during the Worldwide Exchange program on CNBC..
According to Kerner, strong cryptocurrencies can be compared to big companies that survived the dot-com bubble – like e-commerce giant Amazon: “If you think about the Internet bubble, which many in the crypto community are looking at as a guide, then Amazon stock is undoubtedly one of the greatest companies. in the history of mankind, in two years they have lost 95% of their value “.
Amazon went public in May 1997; then one share was worth $ 18. By December 1998, the company’s stock price had soared to $ 300, but in March 2000 it had slipped to $ 6. However, over time, Amazon became one of the largest US companies with a market cap of $ 1 trillion..
According to Kerner, the current volatility is nothing compared to what investors faced in 2013 when the bitcoin market suddenly collapsed by 70%. “This is the whole point of investing in cryptocurrencies,” Kerner said. In his opinion, the impact of large technological changes in the short term is overestimated, and in the long term, on the contrary, it is underestimated..
Kerner also stated that bitcoin is “one of the greatest store of value ever created,” and added that over time, BTC will overtake even gold in this regard. When asked what could be behind the recent drop in the crypto market, Kerner suggested that “he turned out to be weak, because many cryptocurrencies have no intrinsic value, but only people’s faith in these products.”.
Earlier, Spencer Bogart, a partner at venture capital firm Blockchain Capital, said that he also believes that Bitcoin’s potential is “still huge” despite the bearish market sentiment..