For the co-founder and partner of cryptocurrency firm , Lou Kerner, patience is key when it comes to investing in bitcoin.
Speaking to , Kerner said bitcoin investors should take comfort in the example of tech giant Amazon, which lost significant value when the burst but has now emerged as the world’s largest online retailer by market capitalization.
“If you go back to the internet bubble, which is what a lot of us in crypto look at for direction, Amazon, arguably one of the greatest companies in the history of the mankind, was down over 95 percent over two years,” Kerner said in an interview with the business news channel.
Not for the Faint-Hearted
According to Kerner, investing in and other cryptocurrencies requires one to have the stomach for handling volatility. The current market weaknesses of crypto, per Kerner, can be attributed to the fact that digital assets lack underlying value other than confidence. In Kerner’s view, the bearish sentiment will, however, pass as the case for bitcoin as a takes hold:
“I think it’s a store of value. I think it’s the greatest store of value ever created. It should surpass gold over time. It won’t happen overnight.”
With the market capitalization of bitcoin currently under US$80 billion at current , the flagship cryptocurrency would have to appreciate more than a hundredfold to reach gold’s status.
In his own words, much of the faith Kerner has in bitcoin can be attributed to a law coined by Roy Amara, a professor at Stanford University, which states that in the short term, the impact of transformative technology is overestimated while in the long term the impact is underestimated.
Bulls Still Standing
Kerner is not alone in holding a bullish view of bitcoin despite the prevailing bearish conditions. As CCN recently reported, the co-founder of Fundstrat Global Advisors, Tom Lee, still maintains that by the end of this year.
Doubling Down: Tom Lee Won’t Abandon $15,000 Year-End bitcoin Price Forecast
— CCN (@CryptoCoinsNews)
Terming the recent market downturn an “awkward transition,” Lee is optimistic that institutional investors will embrace crypto in larger numbers once there is regulatory clarity.
Another diehard bitcoin bull who has not wavered in the current bearish climate is the co-founder and CEO of Blockstream, Adam Back. Earlier this week, Back projected in a that in the coming years bitcoin could be trading in the :
“I consider $250k-$500k/BTC plausible in the years ahead, from the digital gold, censor-resistent competitor to physical gold, and internet native digital money.”
Featured Image from Shutterstock. Charts from .
Published at Sat, 24 Nov 2018 00:14:51 +0000
