Matt Hougan of Bitwise Asset Management believes the better the cryptocurrency, the better it is for the young industry. Hougan says he expects the coming billing to wipe away the many worthless coins that currently exist, similar to the dot-com era.
95 percent of cryptos are "useless"
Appears on the Masters in Business Chaired by Barry Ritholtz, the podcast global research leader provided striking parallels between today 's cryptocurrency industry and the Dot-Com era the late 90s and early 2000s.
I think these parallels are true. I think it's the next dotcom. Remember, however, that the dotcom bubble created Pets.com but also Amazon.
Hougan comments on the future of the industry explained:
…[T]There are 2,000 cryptocurrencies here, 95 percent of them are useless and will die a painful death. The sooner this happens, the better.
However, Hougan does not expect this cleanup to be the deathblow to the nascent industry. Instead, the Bitwise executive expects thinning out of the herd to usher in the emergence of useful cryptocurrencies.
There are many commentators in the industry today who think many cryptocurrencies are really worthless. This belief has led to the popularization of the term "crap" [sic]; refer to cryptos with little or no economic value.
Hougan is not the first one to do that parallel between cryptocurrencies and the early days of the internet. If the story repeats itself in the form of a crypto-crash, it stands to reason that the surviving projects will be to the industry what Amazon, Google, etc. are for the Internet.
Cryptocurrency value chain still years after complete realization
In the interview, Hougan also highlighted the unique selling point of cryptocurrencies, which are at the heart of decentralized technology. the ability to execute transactions without the need for an intermediary party. According to Hougan, real applications of this capability have a significant impact on the cost of trust.
However, the Bitwise executive acknowledged that it was still very early and much work was needed before cryptocurrencies could reach their full potential. According to Hougan, the current virtual currency user interface leaves much to be desired, especially from the usability point of view.
When the cleanup occurs, the cryptocurrencies are displayed on the other side? Tell us what you think in the comments below.
Courtesy of Shutterstock
The Contribution "This is the Next Dotcom" – 95% of cryptocurrencies "Useless" first tells Bitwise Market Analyst on Bitcoinist.com.
Post source: "This is the Next Dotcom" – 95% of the cryptocurrencies "Useless," says Bitwise Market Analyst
More Bitcoin news and cryptocurrency news on TheBitcoinNews.com