Is cryptocurrency more like an internet bubble and will it have the same effect?
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Answer Is cryptocurrency more like an internet bubble and will it have the same effect?
Startups in the field of Cryptocurrency They have spent billions of dollars in the past 18 months building companies whose goal is to change the world with technology, but many even cryptocurrency backers expect many of them to fail.
“About 95% of these projects will end in failure because they are from seed funding,” said Tony Asia, CEO of cryptocurrency exchange eToro.
His comments echo those of ethereum co-founder Joseph Lubin, who this week compared the growth of cryptocurrencies to the internet bubble of the late 1990s that ended in failure in the early 2000s.
At a press conference in Dublin, Lubin said, “If you look at the internet bubble and its failure, there were many similar problems at that time where a lot of money was invested and a lot of people lost and a lot of projects failed.”Read:The Bitcoin network is now more vulnerable to attack than ever… Find out why
IOTA founder Dominic Schiner expects about 10 of the 1,400 crypto-related projects that have emerged in the past two years to succeed, and crypto investor Danny Masters thinks 5% of projects are worth supporting.
The four are far from questioning the capabilities of digital currencies, as they believe that successful projects will change the world.
A lot of capital has been invested in cryptocurrencies in the past 18 months, specifically through initial coin offerings (ICOs), which allow young people to generate their own Bitcoin-like cryptocurrency for money to support their projects.
More than $9 billion has been invested through ICOs since the beginning of the year.
“We now have something that has never existed before, even in an internet bubble. If you have a smart idea and submit it as a proposal, you will have 10,000 millionaires who will read it and think it is a good idea, and if a thousand of them invest $10,000, which is not a big amount for them, you will have raised $10 million through the initial offer,” Asya said. This has never happened before, at least not for me on this scale.”
Like any investment, there is a lot of risk, and in the case of ICOs, this sector is not regulated around the world and there are many cases of fraud, with the passage of time many projects will fail, as is the case with startups in venture capital.Read:Binance begins testing a stable cryptocurrency in the pound sterling on the Binance Blockchain
However, cryptocurrency enthusiasts expect that the companies that succeed will create significant value thanks to what they see as the transformative features of the blockchain that support cryptocurrencies.
Obi Noso, CEO of Bitcoin exchange Coinfloor, said, “If 10 or 20 projects succeed in 10 years, we will have a lot of revolutionary applications.”
Cryptocurrency investors expect that the immutable blockchain technology has the potential to transform society.Read:Nearly $400 Million Liquidated After BTC Price Drops Below $20,000
Imagine if the owner or certificate of your shares can automatically transfer its ownership to the other party as soon as he achieves what is required of him from the deal, or to have your medical history with you anywhere such as your passport, or you can vote through the blockchain database and you alone can access it, which may contribute In eliminating vote fraud, all of these projects may be possible thanks to the blockchain.
Lubin stated this week, “Technology is amazing and will do a lot of wonderful things to economies, society, and political systems around the world.”
Asya thinks that “investing in cryptocurrencies now is like investing in the internet ten years ago,” suggesting that blockchain may have the same effect as the internet.
“Tesla made 2,000%, Facebook made 1,000%, and Google made 1,000%. This is the same thing, but a bit early.”
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