Venture Capitalist: Be Patient With Crypto, Amazon Took 8 Years to Recover From 1999

Renowned venture capitalist Fred Wilson has said that crypto could go down even more in the short-term. But, investors that remain in the market will likely be rewarded, as was the case in the Dot Com era.

In a blog post on Nov. 25, Wilson said:

“So while crypto asset prices are down 80-95% in USD terms over the last year, they could and probably will go lower. Amazon was down 80% a year into the post-bubble bear market and it got cut in half again before it made a bottom almost two years after it peaked. What we have yet to see in crypto land is when they kick you when you are down. And that is certainly coming.”

Case of Amazon

Amazon, now the second largest technology conglomerate in the world behind Apple with a stock price of $1,500, was worth $6 less than 17 years ago. Investors that bought Amazon stocks in 2001 are up 250-fold. If you had invested $1,000 into Amazon at the time, that investment is now worth $250,000.

But, prior to 2001, in 1999, the price of Amazon stock achieved a new all-time high at $90 as the Dot Com bubble peaked. From then on, the stock price of Amazon collapsed, declining to $6 in 2001. It took Amazon more than eight years to recover to $90 in 2007.

Wilson noted:

“Amazon peaked in the Internet bubble in late 1999 at around $90/share. Almost two years later, at the trough, you could briefly buy Amazon at $6/share. And then it took until late 2007 for Amazon to trade above the highs it reached in 1999.”

Provided by AVC.com

Like Amazon, the cryptocurrency sector has suffered several large corrections in the past and each one of the corrections averaged a drop of 85 percent. As an asset class at its infancy, cryptocurrencies will continue to experience bubble-burst-build-rally cycles in the years to come.

Wilson emphasized that similar to the case of technology stocks in the early 2000s, investors that remain in the cryptocurrency sector through long-lasting downtrends and bear markets will be rewarded in the long-term.

“I think some crypto asset (and possibly a number of crypto assets) will have a price chart like Amazon’s current one in 18 years. But we will have to do what Amazon did, hunker down and build value and survive, for quite a while to get there. And I think things will get worse before they get better,” said Wilson, adding that no paydays were awarded to investors in the technology space until 2010.”

Wilson added:

“But those who stayed were rewarded, although it took a long time for that to happen. We didn’t see meaningful paydays in the Internet sector until the 2007-2008 period and the big paydays didn’t start coming until 2010 and beyond.”

Promising Future

In 2017, as individual investors fueled a strong rally for major cryptocurrencies, the global crypto market secured a valuation of over $800 billion. Since then, the cryptocurrency exchange market has seen a drastic change in its infrastructure with the entrance of Fidelity and conglomerate-backed exchanges.

BitcoinEthereum, and other major blockchain networks saw the implementation of fundamental first layer improvements pertaining to security, privacy, and scalability.

In many areas including regulation, infrastructure, and liquidity, the cryptocurrency sector is in a much stronger position than it was in late 2017.

The latest cryptocurrency market crash was triggered by the movement of the market; when an asset class experiences a four-fold increase in value within a two-month period, it tends to correct. But, as Wilson said, it is important to objectively evaluate the state of the market and the sector with tangible evidence.


Source
Author: Joseph Young
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CoinMarketCap’s Stunning Move Could Accelerate The Growth Of This Token

CoinMarketCap is the go to website for live prices, crypto market analysis and also contains a useful news and announcement feed. It’s a hub for cryptocurrency information and allows traders and investors to really study the markets on both a graphical level and from a social perspective.

LIONBIT

Like many crypto websites, CoinMarketCap rely on funding from advertising revenue and thus, sell out advertising space to companies who wish to advertise their own cryptocurrency and blockchain products. Within this, CoinMarketCap accept payments in Bitcoin and Ethereum, which in turn are used to fund the maintenance and growth of the website. According to some reports, CoinMarketCap have decided to start accepting a new token, but their choice might surprise you.

Moreover, this could have very big implications for the token in question too.

Kind Ads is a crypto project, designed to make the advertising industry a kinder place.

“Through Kind Ads, internet users will only see relevant advertising through channels like email marketing and push notifications, allowing them to browse the web seamlessly, only being exposed to the advertising when they choose to. Publishers are able to adapt push notifications through Kind Ads, ensuring that users still see advertisements, but at their own pace. The platform is already integrating with some renowned companies, including Subscribers, Pushcrew, Mailchimp, Campaign Monitor and AWeber.”

CoinMarketCap can now be added to that list of renowned companies too.

Here’s what CoinMarketCap have had to say in their official announcement:

“As we continue to improve on our ad strategy and involve our users in understanding their needs, we have found many interesting advertising-based blockchain projects developing. One of the projects that we have been paying attention to is Kind Ads. Their goal, to make the Internet more “kind” by making advertising more relevant for end users, is something that we relate to.”

TIP

“As part of their model, users may also have greater control over their data and interests too. So for a start, in addition to accepting payments for ads in BTC and ETH (and fiat), we will now also accept payments for ads in Kind Tokens. Here’s to a brighter future in advertising for all of us: users, publishers, and advertisers alike.”

This could have big implications for Kind Ads and the KIND token. Most importantly, this is going to give Kind Ads some big exposure and it could even encourage more companies who are looking to advertise, to start purchasing KIND in order to fund their advertising campaigns on CoinMarketCap and other websites.

From another perspective, we could even well see this inspire other big cryptocurrency websites to start accepting KIND to.

Is this the start of a Kind Ads revolution?


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Source
Author: Nathan Bentley
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