Well, Bitcoin has been trading among very lower highs since last week or so when it broke the huge long term resistance of $6000. Although, many people are selling their Bitcoin/crypto very much and that's why we can see the ongoing capitulation in the market. Moreover, Bakkt postponement has tumbled the marker further.
On this note, A Venture Capitalist named Lou Kerner, CryptoOracle partner and a Bitcoin maximalist says that Bitcoin is acting like the 'Amazon' of cryptocurrencies and that's why it has to potential to surpass its past ATH's.
He said decentralized economy is pretty new and it will take a while for people to get a hold of it and this ride will be bumpy as well.
For Instance, he gave Amazon's example as well. After Amazon’s initial public offering in May of that year, its stock price went from $18 per share to an average of $106 by December 1999 – before nosediving to $5.97 in September 2001. Amazon traders lost fortunes. Seventeen years later, Amazon is king. One share of the trillion-dollar company is now worth $1,516.
As per this source, he said in his CNBC interview that:
“For anybody who’s been in crypto for a while – there was a day in 2013 when we were down 70% overnight. So nobody likes being down like this but this is part of what investing in crypto is all about at the moment.”
“If you go back to the internet bubble, which I think is what a lot of us in crypto look at for direction, Amazon – arguably one of the greatest companies in the history of mankind – was down over 95% over two years.
So there’s something called Amara’s law, which I always point to. He was a professor at Stanford in the 70s, and he coined the term or the fact that the impact of all great technological change, which we believe crypto is, we believe it’s a new computing platform. Amara’s law is the fact that the impact of all great technological change is overestimated in the short run and underestimated in the long run, and that’s why we get bubbles like we get now.”
So, for the Bitcoin HODL'ers, this could be a sigh of relief and may be he' right. We all know the potential of cryptocurrencies and that's why a small portion of Bitcoin in your overall portfolio might not hurt your investments.
Thanks for reading .!!