Venture Capitalist Says Bitcoin Will Survive the Slump
November 24, 2018
Bitcoin Will Survive Current Slump like Amazon Following 1990s dot-com Bubble: Crypto Venture Capitalist Kerner
From Blockchainreporter.net by Tom Nyarunda Nov. 23, 2018
- Bitcoin is a survivor, greatest store of value
- The slum happens every two years
- Bitcoin will emerge stronger, like Amazon did following the internet bubble
Bitcoin has taken a dip and fallen to its lowest yet this year amidst cryptocurrency market chaos leading miners to shut their rigs down. However, a crypt venture capitalist is giving it a fresh perspective, calling BTC a survivor and the “greatest store of value ever created.”
Bitcoin to Repeat Amazon Success
CryptoOracle partner Lou Kerner told CNBC on Wednesday, November 21, 2018, the prevailing crypto market volatility has been experienced before, only that it was worse, urging longtime bitcoin investors to endure.
Saying you need to be strong-hearted to succeed as a bitcoin investor, Kerner said the current phenomenon has happened every two years and holders have always been rewarded handsomely. The crypto venture capitalist spoke about a day in 2013 when prices slumped 70 percent overnight but added that while it felt unpleasant, it is “what investing is all about.”
Giving the slump a fresh perspective, whose venture capital firm supports a centralized digital economy, likened the situation to Amazon’s experience during the 1990s Dot-com bubble. He explained:
“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 by Jeff Bezos, the world’s largest online retailer made its debut in 1995 as a bookstore before adding movies, music, electronics, computer software, and many other consumer goods to its diversified offerings. Amazon’s May 15, 1997 IPO was priced at $18 per share, rose to $100 and later dropped to $10 after the dot-com bubble burst in 2000.
On March 10, 2000, the Nasdaq reached an all-time high of 5132.52, after which the index faltered until October 9, 2002, having lost 78% of its value. Amazon, like other dot-com companies, had a business plan that focused on brand recognition at the expense of profit-making and stayed in the blues until Q4 2001. Fast forward, Amazon in September 2018 became the second U.S. Company to eclipse a stock market value of more than $1 trillion.
Bitcoin became a household name in 2017 when its value shot from $3,600 per coin to about $20,000 in December of that year. However, its price slid to $7,000 in February 2018 and after moving up and down it hit a low of $4,100 on Tuesday, November 20, 2018. Exuding confidence, Kerner states:
“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 […] I think it’s a store of value, the greatest ever created, […] it should surpass gold over time. It won’t happen overnight.”