Why Bitcoin is similar to post dot-com Amazon

The price crash of Bitcoin isn’t a cause for massive alarm, argues a long-term crypto venture capitalist…

by Manoj Sharma for CNR

Lou Kerner, CryptoOracle’s executive partner, believes that the recent crash in the price of Bitcoin and altcoins is only temporary. In a discussion with CNBC, he spoke about the current state of digital assets and likened it to the retail giant, Amazon.

The crypto venture capitalist argued that “if you go back to the internet bubble, which is what a lot of us in crypto look at for direction, Amazon, arguably one of the greatest companies in the history of the mankind, was down over 95 percent over two years”.

Founded back in 1994, Amazon went public three years later, at $18 per share. With the growth of the online retail business, the stock price of Amazon’s shares soared to $300 mark by the end of 1998. However, the price plunged down to $6 when the dot-com bubble burst. Two decades later, Amazon became the second American firm to have a market cap of $1 trillion.

Amazon, too, has been pushing heavily blockchain technology development. It’s devoted multiple resources to distributed ledger projects.

Having been in the industry since 2009, the early days of blockchain, Kerner has a plenty of BTC investment experience. He explains that the current volatility is nothing compared to the huge price slump experienced by the Bitcoin in the old days.

He recalled that “there was a day in 2013 when we were down 70% overnight. Nobody likes being down like this. But this is what investing in crypto is all about”.

Commenting on the recent crackdown from regulatory bodies around the word, he added that “crypto has been so weak because most of it there’s no underlying value outside of confidence. But Bitcoin, itself, we think is going to replace gold eventually. Gold is an $8 trillion thing. I think it’s a store of value. I think it’s the greatest store of value ever created. It should surpass gold over time. It won’t happen overnight”.

We wait and see if it happens, and just how quickly…

Image: BigStock