Don't reject cryptocurrencies, it's the future of the internet

Don’t reject cryptocurrencies, it’s the future of the internet


After the (most) recent cryptocurrency, it is tempting to jump on the opponents’ train.

He recently wrote the Financial Times Moral case against crypto, saying crypto-angels “rely on a ‘bigger fool’ … continue to believe ‘lies and maintain their dishonest plans.”

This week at Evening Standard, Andy Bell, founder and CEO of AJ Bell’s leading investment platform, said: “It’s not useful, you’ll never find me defending cryptocurrencies, it’s fresh air and promises. People invested in good faith. They lost their shirts, pants and underpants. “

But when money is lost, it’s easy to point a finger. Therefore, it is worth bringing recent events to light.

The Internet has become so universal that we may have forgotten its Wild West days. The collapse of dotcom cost individual investors $ 5 trillion by investing in stocks (yes stocks).

But we all know what followed – huge investments in technology companies have created the infrastructure and foundations on which the modern Internet was built.

Compared to dotcom’s losses, the current total market capitalization of cryptocurrencies is only $ 1.2 trillion, losing about $ 1 trillion since Luna imploded.

But is there any reason to think that cryptots have a positive future? Is there a long-term value in basic technology that could justify a bullish view?

To answer the first question, it is worth comparing the acceptance rate on the Internet with the acceptance rate of cryptocurrencies. The World Bank, and others like Deutsche Bank have shown that the acceptance rate is remarkably similar.

Hyper cycles driven by technology (which we have recently witnessed in cryptocurrencies and experienced in the dotcom bubble) are nothing new – those who are interested should explore how the railways or, in fact, today’s telecommunications infrastructure were built. Hype cycles drive the adoption of useful technology in the long run.

But what is the usefulness of cryptocurrencies? Most people have heard the term Web3, which refers to the next generation of blockchain-powered Internet. Web3 promises an internet where users own and control their data, thus reducing the risk of misuse by third parties.

Web3 users get paid fairly for using the internet (yes, you can get paid for surfing the web) or for sharing data.

Blockchain is a mechanism through which interactions are monitored and provides a record that can be kept private and safe. Provides control over your digital footprint. Crypto assets are a mechanism for capturing value in this future state.

Some of the world’s most successful investors believe in the vision, such as Andreesen Horowitz, who has just doubled his commitment to investing in cryptocurrencies and who likened the long-term opportunity to the “next big computing cycle” after computers in the 1980s and the early 1990s. 21st century.

Sure, hype cycles, inappropriate celebrity support, crypto bros and sometimes Bored Ape will be tolerated, but I think that’s the future we can all get into. No?

Phil Holbrook is the CEO of Bond180 and a technology entrepreneur


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