Bitcoin believer and CryptoOracle partner Lou Kerner says that the trajectory of the decentralized digital economy is long, and the ride will be bumpy.
Bitcoin is not the first long-winded, disruptive platform to post epic wins followed by jaw-dropping crashes. Amazon, promising to reinvent how people shop, first made big waves on the tech scene back in 1997 with high-flying stock prices.
After Amazon’s initial public offering in May of that year, its stock price went from $18 per share to an average of $106 by December 1999 – before nosediving to $5.97 in September 2001. Amazon traders lost fortunes.
Seventeen years later, Amazon is king. One share of the trillion-dollar company is now worth $1,516.
Kerner told CNBC,
“For anybody who’s been in crypto for a while – there was a day in 2013 when we were down 70% overnight. So nobody likes being down like this but this is part of what investing in crypto is all about at the moment.”
“If you go back to the internet bubble, which I think is what a lot of us in crypto look at for direction, Amazon – arguably one of the greatest companies in the history of mankind – was down over 95% over two years.
So there’s something called Amara’s law, which I always point to. He was a professor at Stanford in the 70s, and he coined the term or the fact that the impact of all great technological change, which we believe crypto is, we believe it’s a new computing platform. Amara’s law is the fact that the impact of all great technological change is overestimated in the short run and underestimated in the long run, and that’s why we get bubbles like we get now.”
Kerner says Bitcoin is the greatest store of value ever created and that it will take time before its market cap climbs into the trillions and replaces gold.