Union Square Venture is one of the largest US venture capitalists. Its president, Albert Wenger, recently raised at CNBC's microphone a potential explosion of cryptocurrencies in the future.
Double or quits…
The Slush conference in Helsinki brings together over 2 days from 4 to 5 December, more than 20,000 players in the tech world. Wenger spoke on CNBC's cryptocurrencies. According to him, the market still shows an "irrational exuberance" (compared to the rises and falls of the last days), but could well be propelled to new heights in the near future.
"I think that, taken together, cryptocurrencies could be worth several trillion dollars. It's still a long way off. "Albert Wenger, President of Union Square Venture
Bitcoin, in the footsteps of Amazon?
The bubble concept is often referred to as the major risk associated with cryptocurrencies. Many industry players agree that a bubble does exist. That said, no fatality to this one, its burst does not necessarily mean the end of Bitcoin. The currency has after all already recovered from much worse.
The price of the action Amazon. Why does not anyone talk about bubble?
Most analysts consider that price volatility and the unbroken uptrend are all warning signs announcing the catastrophe. Yet, as Wenger points out, there are similarities between Bitcoin's graphics and those of large, established companies like Amazon.
"If you look at the Amazon charts, you see that huge uptrend. But if you zoom, you will see big climbs followed by heavy descents. The current rise may be insignificant retrospectively. [...] At the point where we are, the price could totally collapse. But there is also a possibility or, in the future, cryptocurrencies as a whole worth several trillion dollars. "Albert Wenger, president of Union Square Venture
The price of the action Amazon weekly between 1997 and 2010. Increases of more than 100% in the space of a few months.
This analysis thus joins that of an Allstarchart editor whose article "Why the Bitcoin Bubble Has Already Exploded" was translated, comparing Bitcoin's price chart to that of big companies like Amazon.
Editor's note: 1 trillion = 1000 billion
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