A huge crypto price crash has plunged traders into a panic in recent weeks as they desperately try to call the market bottom—though Elon Musk thinks he knows.
The bitcoin price has dropped to under $20,000 per bitcoin, a psychological level bitcoin first breached in 2017 before collapsing by around 90%. Ethereum, its biggest rivals BNB
Now, as major bitcoin and crypto players issue dire warnings over crypto’s future, one widely-respected central banker has predicted those that survive the crypto crash could become the tech giants of the future—similar to the likes of Amazon
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“The analogy for me is the dot-com boom, when $5 trillion was wiped off values,” Bank of England deputy governor Jon Cunliffe said at the Point Zero Forum in Zurich this week, it was first reported by Bloomberg. “A lot of companies went, but the technology didn’t go away. It came back 10 years later, and those that survived—the Amazons and the eBays—turned out to be the dominant players.”
Ethereum, BNB, solana and cardano are battling for dominance of the decentralized app and decentralized finance market, sometimes called web3. Ripple, currently locked in a long-running legal battle with the U.S. Securities and Exchange Commission (SEC), developed XRP in an attempt to replace the aging 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 rocketed since late 2020, boosted by wild speculation and the huge influx of pandemic-era stimulus measures. However, the Federal Reserve beginning to raise interest rates and reduce its swollen balance sheet sent the price of bitcoin and other cryptocurrencies into free fall.
“Whatever happens over the next few months to crypto-assets, I expect crypto technology and finance to continue,” Cunliffe said, adding cryptocurrencies have the “the possibility of huge efficiencies and changes in market structure.”
In contrast to Cunliffe’s relatively bullish attitude, Bank of England governor Andrew Bailey has repeatedly said he thinks bitcoin and cryptocurrencies broadly have “no intrinsic value.”