CoinShares Strategist: Think of Cryptocurrencies as Early Internet Stocks
In a recent interview on CNBC’s Fast Money, Demirors fielded questions related to the current status of the highly volatile cryptocurrency market. In doing so, she emphasized how difficult it is for investors to grasp the narrative surrounding blockchain technologies and how imperfect coin price is as a metric of growth.
The narrative around bitcoin is still really hard to grasp. Really the only metric we have for most cryptocurrencies is the price, and price is such an imperfect metric. What does actual utilization look like? That’s really the struggle for crypto right now.
Demirors admits that the latest runup in cryptocurrency prices was nothing more than a speculative bubble and that investors need to think more long-term as real use cases for digital assets begin to mature. She compares this to how tech giants like Amazon, Microsoft and Intel emerged from the dot-com bubble.
After her interview on CNBC, Demirors took to Twitter to further elaborate her comparison between early internet stocks and the current crypto market by providing multiple charts for the FANG stocks.
1/ doing a quick lil' thread here to dive further into my comments on @CNBCFastMoney
— Meltem Demirors (@Melt_Dem) August 14, 2018
In conclusion, Demirors thinks crypto investors need to survive their own versions of the notorious dot-com bubble flops like pets.com in order to enter a period of value growth, like that seen over the last 15 years in the tech sector.
We’re in the start of a new phase of capital formation. we have some analogs (ie internet / tech stocks) on how this might evolve, but also need a certain tolerance for failure (pets.com, webvan, etc)
Disclaimer: This article’s author has cryptocurrency holdings that can be tracked here. This article is for informational purposes only and should not be taken as investment advice. Always conduct your own due diligence before making investments.