- Gloomy narrative of crypto industry bad for its long term growth
- The tech is still early just like the Internet in 1995
- Goldman Sachs, the first and biggest investor in Alibaba sold its share in the company in 2003, losing 7,795% increase in valuation
- Now identify the long term winners, the Amazon and Alibaba of crypto
Are you still crazily optimistic about Bitcoin?
If not then this could put a long term growth risk on the cryptocurrency industry, according to Spartan Black, a partner at blockchain advisory and investment firm The Spartan Group.
The former Indus capital and Goldman Sachs partner fears that even the early crypto diehards are now “sounding the industry’s death knells” and this “gloomy” narrative, he says is not good for the entire space.
Why the Pessimism Folks?
It’s not just that many projects are ”floundering” and the funding for blockchain-startups is also down “sharply,” Spartan Black says people are still waiting for a killer app when Bitcoin’s role as an alternative store of value is the one.
People, he says are getting impatient for the technology and the digital currency to make it to the mainstream. But Bitcoin has not only seen “phenomenal growth” in its value but also growing acceptance.
The market is also seeing the proliferation of DeFi application. The lending platforms as we have seen are seeing immense growth, going from $1.5 million in collateral value about two years ago to $665 million today. As DeFi scales, it “will slowly eat into the business domains of existing financial institutions.”
Though it is financial speculation at this point, the main breakthrough necessarily have to be related to the “creation and transmission of money/value,” argues Spartan Black.
It’s Still Early, We are only getting started
The tech is still early.
Institutional investors have just started to come into the asset class and crypto assets don’t even feature in most portfolios yet, notes Spartan Black.
Crypto space currently…