With the recent crypto market crash, investors are anxious about the future of cryptocurrencies. In the past weeks, CNBC media interviewed several crypto industry experts to know what they believe will be the future of crypto following the LUNA collapse. Most market experts believe that large numbers of the now existing 19,000 cryptocurrencies and many blockchain stages will vanish in the long run.
While Scott Minerd, Guggenheim’s Chief Investment Officer, emphasised that most cryptocurrencies are garbage, he believes Bitcoin and Ethereum might survive in the long run.
Brad Garlinghouse, CEO of cross-border blockchain payments organisation Ripple, also added that there would probably be simple “scores” of cryptos that stay from now on. He stated :
“I think there’s a question about whether or not we need 19,000 new currencies today. In the fiat world, there are maybe 180 currencies.”
Bertrand Perez, CEO of the Web3 Foundation, explained that the recent crypto price fall demonstrated an enormous disadvantage to the market. The breakdown of “stablecoin” called TerraUSD and related advanced symbolic Luna, restored conversation of whether the large number of digital currencies in existence will all get by. He noted:
“One of the effects of what we’ve seen last week with the Terra issue is we’re at the stage where basically there are far too many blockchains out there, too many tokens. And that’s confusing users. And that’s also bringing some risks for the users.”
Perez further compared the crypto market with the early days of dot-com, stating that numerous cryptocurrencies won’t make due during bear markets. The dot-com bubble was a fast expansion in U.S. innovation stock value valuations energised by interests in Internet-based firms in the last part of the 1990s. The value of markets developed massively during the website bubble somewhere in the range of 1995 and 2000. Be that as it may, values entered a bear market after the air pocket burst in 2001. The air pocket caused a few web firms (like Cisco, Intel, Oracle, and numerous others) to become penniless.
Perez further explained:
“Like at the beginning of the internet, you were having lots of dot-com companies and lots of them were scams, and were not bringing any value and all that got cleared. And now we have very useful and legit companies.”
Cryptocurrency has experienced rapid development over the most recent two years, however its future in 2022 and beyond is hazy. The extended time of ‘2021’ was a leap forward for the business as enormous concentration and consideration was being paid to the area.
