Bitcoin draws comparisons to just about everything under the sun. Gold, the internet, even rat poison. But comparisons with the fossils of the early internet age like AOL or MySpace? One wealth manager with a focus on crypto explains why this simply will not be.
Brilliant Business Minds Agree: Bitcoin Is As Powerful And The Internet Or The PC
Some of the most brilliant minds in the world and big-name investors from the dot com boom also believe in Bitcoin. Venture Capitalists Tim Draper and Marc Andreessen from Andreessen Horowitz immediately come to mind.
Andreesen, a tech entrepreneur who built his empire from riding the waves of the early days of the internet, says Bitcoin is as powerful as the PC, and the internet.
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The transformative financial technology is a layer for the future to eventually be built on, much like the early days of TCP:IP and early PCs. It is not quite there, but that hasn’t stopped the crypto asset’s market cap from reaching $200 billion.
Why The Top Cryptocurrency Won’t End Up Like AOL Or MySpace
The $200 billion market cap cryptocurrency has drawn comparisons with dot com companies that have since gone defunct or were dethroned.
The first comparison was positioning Bitcoin next to MySpace. MySpace was the first major social network to exist and get its footing, yet it failed to evolve and stay ahead of the competition. Eventually, from MySpace’s fall arose Facebook, Twitter, Instagram, and TikTok – today’s new top giants.
Could Bitcoin fall the same fate? No, says Andy Edstrom, author, wealth manager, and head of institutional at Swan Bitcoin. The self-proclaimed “hard money enthusiast” says that following MicroStrategy CEO Michael Saylor’s notion that any tech brands with a $200 billion or more valuation, make them a clear “category winner” is a smart play.
In the thread, another category comparison came up, putting Bitcoin next to the king of dial-up internet in the early days of modem technology, AOL.
BTCUSD Weekly Long-Term Technology Adoption Curve | Source: TradingView
America Online exploded in growth and visibility during the peak of the dot com boom, reaching a valuation for $200 billion – the same about as Bitcoin.
Today, the company is a shadow of its former self, best left to the horrid-sounding memories of connecting via the phone line.
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Edstrom points out that AOL’s peak valuation was achieved during the dot com boom, meanwhile, Bitcoin has maintained this valuation after the crypto bubble popped.
Once Bitcoin’s uptrend begins again, it will become the true test of if the asset evolves into what the likes of Draper and Andreseen see in its potential, and to the incredible prices that some experts predict.