- Jun 14, 2018
Benedict Evans, a general partner at Andreessen Horowitz (A16Z), one of the most successful venture capital firms in the world, has said that crypto is quite similar to the internet in 1993.
As with any other emerging technology or market, the cryptocurrency space has seen a large number of failed projects and scams over the past several years.
However, according to Evans, if investors focus on the failed projects and fraudulent operations in the exponentially growing cryptocurrency sector, it would be like dismissing the internet in 1999 based on the lack of progress of Usenet, Cuecat, and Boo.com.
“Crypto today has a lot in common with both the internet in 1993 and the internet in 1999. Huge potential with few of the use cases invented yet, combined with froth, scams and delusion. This makes it easier to dismiss. But dismissing crypto as a useless scam is much like looking at Usenet, Cuecat and Boo.com and dismissing the internet. It mistakes applications for the enabling layer.”
Hence, due to the discrepancy in efficiency and practicality between emerging technologies and existing solutions, it is easier to dismiss newly created technologies on the premise that they are dominated scams.
In a new market, investors often try to rush in to invest in every new project to catch the bubble. Several cryptocurrency projects reached multi-billion dollar valuations in late 2017 as the valuation of the cryptocurrency market reached $800 billion.
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I witnessed the explosion of the dot com era. It was amazing, and really feels like the crypto space while going through the bull run. Truth be told, I ignored the .com nosedive for the most part as I wasn't invested at the time.