Remember the Internet in the 1990s?
Some people might remember the internet of the 1990s and how things worked at that time. I remember myself working in Germany for a pretty huge marketing company close to my city. At that time the internet started to grow and I mentioned in several meetings that we should take a deeper look into that technology and even consider to take part by having an own website and email addresses.
My boss and colleagues came up and rejected my ideas with ridiculous arguments listed as follows:
- “The internet is just a game and not meant for business purpose!”.
- “We have phone and telefax, nobody will ever write emails”.
- “Websites are just a trend which will disappear in 1 or 2 years for sure”.
- “Our competitors also don’t use websites or emails, I guess they know why”.
- “A trend where people now jump on and in a couple of years no one will remember”.
- “Seriously, do you really think I will write messages on my Computer, are you kidding?”.
Today in 2017 we have similar silly arguments against cryptocurrencies and the technology behind them. Most of the time you will notice that the statements against cryptos have no solid fundamental understanding of the technology and the capabilities it offers. Even worse, the statements clearly show that most of the complaining so called “experts” didn’t even spend one single minute to analyze what they are talking about.
BlockTower Capital cofounder Matthew Goetz, a former Goldman Sachs vice president, stated in an interview that Bitcoin and any other cryptocurrencies are comparable to the Internet in the 90s. He also stated that bets which have taken place in the past were also as today a high risk, same as todays investments in digital currencies.
“You could be right on the thesis that cryptocurrencies are transformative and you could make what you think is the right bet at the time, but remember one time you had Yahoo and then this thing called Google came along.”
…which is a valid argument. You might even remember back in the day when a social platform called “MySpace” had the status of being the one and only social platform to connect. Then Facebook jumped in and MySpace was useless, boring, you name it.
Goetz’s comments and predictions
In 2017 the cryptocurrency market worldwide had a pretty outstanding rise, and registered more than 1000 cryptocurrencies. Bitcoin performed insanely by 450% to almost $4400.
Bitcoin will not stay as the top dog digital currency forever despite its phenomenal rise, Goetz mentioned. Bitcoin and the other virtual currencies can be toppled by a cryptocurrency with superior technology. (Comment by the author: Which makes sense, let us not forget one of the best use cases on the crypto market called IOTA).
“Bitcoin is the most entrenched, it has very stable protocol, it doesn’t change a lot, and it has a very strong developer base, but at the end of the day, it is still software. There is some chance that something an order of magnitude better than Bitcoin, technologically, could come along.”
In order for a rival cryptocurrency to replace Bitcoin, it should have much better capabilities than the crypto top dog, Goetz claimed.
“It’s something like Facebook. If someone creates a new Facebook that has slightly better features, say 10 percent better. That’s great, but network effects are strong. So, that new thing isn’t going to kill Facebook.”
