A huge drop in cryptocurrency prices has plunged traders into a panic in recent weeks as they desperately try to call the bottom of the market—though Elon Musk thinks he knows.
The price of bitcoin has dropped to less than $20,000 per bitcoin, a psychological level bitcoin that was first breached in 2017 before crashing around 90%. Ethereum, its biggest rivals BNB
Now, as major bitcoin and crypto players issue dire warnings about the future of cryptoa highly respected central banker has predicted that those who survive the cryptocurrency crash could become the Amazon-like tech giants of the future
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“The analogy for me is the dot-com boom, when $5 trillion was wiped out,” Bank of England deputy governor Jon Cunliffe said at the Point Zero Forum in Zurich this week. Bloomberg. “A lot of companies left, but the technology didn’t go away. It came back 10 years later, and the ones that survived, Amazon and eBay, turned out to be the dominant players.”
Ethereum, BNB, solana, and cardano are fighting for dominance in the decentralized finance and decentralized application market, sometimes called web3. Ripple, currently engaged in a lengthy legal battle with the US Securities and Exchange Commission (SEC), developed XRP in an attempt to replace the old international finance settlement system.
The meme-based dogecoin, based on bitcoin and originally created as a “joke”, has been adopted by the likes of Tesla.
The value of almost all major cryptocurrencies has skyrocketed since the end of 2020, fueled by wild speculation and the huge influx of pandemic-era stimulus measures. However, the fact that the Federal Reserve began to raise interest rates and reduce its bloated balance sheet sent the price of bitcoin and other cryptocurrencies into a free fall.
“Whatever happens in the next few months with crypto assets, I expect crypto technology and finance to continue,” Cunliffe said, adding that cryptocurrencies have “the potential for huge efficiencies and changes in market structure.”
In contrast to Cunliffe’s relatively optimistic attitude, Bank of England Governor Andrew Bailey has repeatedly said that he believes bitcoin and cryptocurrencies in general “have no intrinsic value.”