Crypto Is Still Like Late 1990s Internet Boom Despite Market Crash
Key Insights:
- Brock Pierce claims BTC will go to $1 million or crash to zero.
- Ethereum is a potential winner due to its smart contract capabilities.
- Another $200 billion has been wiped off crypto markets.
The former actor turned crypto pioneer made the comments in a recent interview with Fox Business as the digital asset market continued its rapid descent.
Despite the massive downturn, Pierce is still confident that the technology has a long way to go, stating, “I think we are exactly where the tech industry was in 1999, 2000.”
Your capital is at risk
He added that it is a binary situation with Bitcoin [BTC] going to a million-plus dollars per coin or its going to zero.
“Many of these projects will go to zero, but many of them will become the eBays, the Amazons, the PayPal of our time and future, but with probably even greater success.”
The dot-com bubble was a stock market boom caused by excessive speculation of Internet-related companies in the late 1990s. Today, four of the top five largest companies globally are internet or tech-based.
Betting on Ethereum
Pierce is a Bitcoin maximalist, but he also sees a lot of potential in Ethereum [ETH] for the additional functionality such as smart contracts it has added to the digital finance ecosystem.
He added that Ethereum is going through a “crucible moment” with the upcoming upgrade to Ethereum 2.0 or “consensus layer” later this year.
“If they succeed in doing that, they’re well-positioned to continue to be in the place that they are in or even a better place than they currently are,”
Billionaire Dallas Mavericks owner Mark Cuban has echoed the sentiment that crypto is currently going through the same lull that the internet went through. He added that corporations have yet to embrace smart contracts to improve productivity and profitability, which will be the next driver.
“When business can use Smart Contracts to gain a competitive advantage, they will. The chains that realize this will survive.”
Crypto is going through the lull that the internet went through. After the initial surge of exciting apps, NFTs, DeFi, P2E, we saw the imitation phase as chains subsidized the movement of those apps to their chains (ala bandwidth and storage subsidies by startups in the 2000s)
— Mark Cuban (@mcuban) May 9, 2022
Crypto Markets Dump 12%
Total market capitalization has seen one of its largest daily dives of the year, with a decline of 11% over the past 24 hours. This has resulted in a whopping $200 billion leaving the space since the same time yesterday. Markets have shed 20% of their value over the past 30 days.
Bitcoin has fallen to its lowest level since July 2021, dropping a touch below $30,000 during the Tuesday morning Asian trading session. Most of the altcoins are in double-digit decline at the moment as the crypto bloodbath continues.