Leading VC investor compares crypto with Internet in 1993
Benedict Evans, the founder and general partner at A16Z, one of the world’s most successful venture capital funds, has compared cryptocurrency in its current state with the Internet in 1993.
According to Evans, the biggest problem that exists in the crypto industry now is that major investors simply don’t fully understand it – same as it was with the Internet back in 1993, when the mainstream didn’t use it, and the web barely existed. The only difference, Evans says, is that cryptocurrency has already established a number of use cases that are far better and more efficient than its traditional banking alternatives. Take a recent astonishing example of moving $194 million worth of Bitcoin with only a $0.1 fee. Something like that would not be even feasible with traditional banks, and operations like that are the true potential of crypto, experts say.
Evans emphasized that all emerging technologies have a similar path – all of them first seem inferior to the traditional ones. Take the Internet, mobile phones, or literally any innovative technology that has revolutionized our lives. They all started with a lot of misconception due to not fully understanding its potential.
One of the major turning points for any innovation is mainstream use cases, Evans says. Despite being still in the early stage, cryptocurrency is now on its path to becoming mainstream. More and more state governments have recently come out with new favorable regulations in the crypto industry, recognizing its true potential for solving the current economic crisis and unemployment rate. According to Evans, the more market develops, the more crypto integration we will see in our everyday lives, establishing a broader mainstream use and eventually the market domination.