Lou Kerner, an executive partner at crypto venture capital company CryptoOracle believes that the recent collapse of bitcoin and other virtual currencies is only temporary. Speaking to CNBC, on the “Worldwide Exchange” show, he likened the current state of digital assets to the retail giant Amazon at the turn of millennium.
Amazon recovered after being down 95%
Mr. Kerner claimed 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 in 1994, Amazon went public three years later, at $18 per share. As the online retail business developed at a rapid pace, the stock price soared, eclipsing the $300 mark by the end of 1998. However, the burst of the dot-com bubble meant the inevitable crash, dragging the price to less than $6. Twenty years on, Amazon became the second American company to have a market cap of over $1 trillion. Nonetheless the Amazon stock has shed 27 percent of its price since the September heights and the company is worth around $740 billion at press time.
Amazon has been at the forefront of blockchain tech development, with significant resources devoted to distributed ledger projects. Bank of America has recently claimed that adopting blockchain is a major opportunity for the company. The retail giant will hugely benefit from increasing cloud services demand, stemming from blockchain adoption. The nascent blockchain tech will also improve supply chain tracking, making the retail operations much more efficient.
Bitcoin will eventually replace gold
Kerner has a wealth of BTC investment experience, having been in the industry since its early days. According to him, the current volatility is nothing, compared to the old days. He recalled 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.“
Speaking on the recent crypto slump, Kerner said 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.“
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I have been following the crypto markets since mid 2017, just in time to witness the incredible surge of the digital asset industry. Fascinated by the potential of blockchain technology I’ve started to dig deeper and that’s how I ended up meeting the Toshi Times team. I hold a Political Science degree, therefore the crypto regulation development is particularly interesting for me. I’m also heavily involved with music, running my own label, a YouTube channel and working with distribution. People call blockchain the ‘Fourth Industrial Revolution’ and I believe it will change our daily lives in the coming years and we will have the front row seats to witness it.