After a decade or so of strong growth, crypto looks to be having a similar crash as to what was experienced in the early 2000s after the dotcom bubble popped. Perhaps similarly to those times, only the strongest and most innovative companies are likely to survive.
In a recent thread on his Twitter account, Ari Paul, CIO, and founder of BlockTower Capital, said that he expected bitcoin to survive the current crypto crash, but that looking out over a 2-year time frame, he expected that only the strongest crypto projects would survive.
However, he does remain remarkably bullish over the longer term, saying that now was the best time to be buying since Feb 2021.
Paul also had something to say about the alternatives to crypto, especially what is happening with central bank digital currencies (CBDCs) in China.
On the events of the dotcom crash of 2001/2, Paul sees many similarities to what is currently happening in crypto. He believes that bitcoin is the Amazon.com of those times, and that the rest of crypto are “bets” by VCs.
It generally appears to be that what Paul is saying is that there will be a wipe-out of a lot of the cryptocurrencies, the bad as well as some of the good. But a few years down the road the industry will start getting built out again.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
