Coinbase Founder Predicts Most Cryptos and NFTs Will be Worthless within a Decade
Bitcoin, Ethereum, Dogecoin, Binance Coin, Cardano, XRP, and several other top cryptocurrencies were seen struggling for most of the week. The market cap of all cryptocurrencies together had tumbled under $1.4 trillion from $1.75 trillion on Tuesday.
Bitcoin, for instance, had topped the $40,000 price mark on Monday following Elon Musk’s tweet on Tesla suspending vehicle purchases using Bitcoin over the weekend. However, shortly after that, it resumed its drop after Tuesday end of the day, falling back toward $30,000 per bitcoin on Sunday, according to CoinMarketCap.
The coin’s charts show the price’s 50-day moving average has fallen below the 200-day moving average—a pattern known as the death cross.
Could History Repeat Itself?
However, it’s worth noting that the last time such a scenario was observed in March 2020 resulted in a considerable price surge that saw a significant rise in Bitcoin and other cryptocurrency values.
Coinbase co-founder Fred Ehrsam has given a stark warning that most cryptocurrencies and blockchain-based assets such as NFTs won’t work and will have “little to no value in three to five years” following recent crashes in the market.
Ehrsam’s criticism of NFTs comes when the digital asset class has generated excitement, and its fame has swept the world. The former Goldman Sachs foreign exchange trader drew a parallel between the early internet companies from the late 1990s and NFTs and said that he goes so far as to say that 90% of NFTs produced probably will be worthless within the decade. He asserted that if the bubble hasn’t already burst, it will soon.
Ehrsam said that there was not much difference between NFTs and other crypto projects born out of hype overnight. He added that people would try all sorts of things, and there’ll be millions and millions of cryptocurrencies and crypto-assets, just like there were millions and millions of websites. But, unfortunately, the Coinbase co-founder warned that most of them wouldn’t work.
Ironically, his comments come after internet inventor Tim Berners-Lee decided to auction off the source code of the world wide web as an NFT last week.
Dog-faced Crypto Shiba Inu Has Great Potential
Speaking of digital currencies, Ehrsam advised people not to dismiss the Shiba Inu dog-faced cryptocurrency Dogecoin. He noted the digital currency had taken the popularity of the cryptocurrency market to a whole new level.
The 33-year-old investor said that crypto had taught people never to dismiss a good meme that couldn’t later manifest into more concrete progress.