The game of digital currency investment is not a game for the weak minded, says Lou Kerner, CryptoOracle partner. During an interview with CNBC on Wednesday, Kerner said those that invested in the world’s most dominant digital currency over the past two years have been greatly rewarded. Kerner is a venture capitalist and he has a very long investment horizon. His venture capital firm is also in support of what is known as “decentralized digital economy.”
Kerner was using the case of Amazon to restore hope in the crypto space. According to Kerner, going back to the internet bubble, Amazon, which is one of the best firms the world has ever seen, declined by more than 95% in a two-year period. He said this on World Exchange, adding that the internet bubble in the 90s is what a lot of people in the crypto space are looking unto for direction.
Amazon 1990s Dot-Com Bubble
Back in May 1997, the shares of Amazon went public and it was valued at $18 per share. The value of the share increased significantly the next year. In December 1998, a single share was valued at over $300. Before the value got to $300, a splitting occurred in June.
The firm carried out only two other splits in 1999 just before the dot-com bubble occurred in March 2000. As a result, the value of Amazon’s share declined drastically. The share was valued at less than $6 in September 2001. In September this year, Amazon became the second firm in the U.S to have a stock market that is valued at more than $1 trillion.
Amazon tested its all-time high on the 4th of September when a share was valued at $2,050. However, the stock value has been depreciating since then. Since then, the shares of Amazon have dropped by 27%. Kerner said the volatility is high and troubling, however, it can’t be compared to what Bitcoin (BTC) investors might face.
He said there was a time in 2013 when the value of Bitcoin (BTC) declined by over 70 percent in one day. No one likes such a downswing, but that’s what the crypto market is all about.
Kerner believes gold will be replaced by Bitcoin (BTC) one day. This will not happen in one day, but it will happen eventually. He said the reason why the crypto industry is weak right now is that it has no underlying value outside of confidence. He believes Bitcoin is a great store of value, and he’s not the only one in this lane.
However, Bitcoin (BTC) has a lot of skeptics out there. Most of its skeptics are Wall Street veterans, such as Jamie Dimon of J.P Morgan. In September last year, Dimon called Bitcoin (BTC) a scam. Nevertheless, he recalled his comments after a couple of months. Kerner is trying to restore hope in the crypto space, and he believes Bitcoin and other cryptos will rise again very soon.
Bitcoin (BTC) Price Today – BTC / USD
Bitcoin (BTC) is currently trading at $4,580 after an increase of about two percent over the past 24 hours. The digital currency currently has a market cap of $79.77 billion with a trading volume of 5.81 billion over the past 24 hours.