Bitcoin, Ethereum, Dogecoin, Binance Coin, Cardano, XRP, and many other leading cryptocurrencies were seen struggling for most of the week. Bitcoin, for example, had surpassed the $ 40,000 mark on Monday following Elon Musk’s tweet about Tesla suspending purchases of vehicles using Bitcoin, before resuming its decline after late Tuesday to $ 33,432. Sunday, according to CoinMarketCap. The market cap of all cryptocurrencies combined had also slipped below $ 1.4 trillion from $ 1.75 trillion on Tuesday.
As the crypto market continued to see a course correction, Coinbase co-founder Fred Ehrsam warned that cryptocurrencies and crypto assets will not work in the future. “People are going to try all kinds of things. There will be millions and millions of cryptocurrencies and crypto assets, just like there were millions and millions of websites. Most of them won’t work, ”Ehrsam told Bloomberg. Former Goldman Sachs trader, Ehrsam had left Coinbase – the largest crypto exchange in the United States that went public in April of this year – to launch blockchain investment firm Paradigm.
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“I go so far as to say that 90% of the NFTs produced, they will probably have little or no value in three to five years. You could, however, say the same about the first internet companies in the late 90s, ”Ehrsam added. NFTs are unique and cannot be traded unlike cryptocurrencies, which are identical to each other, and can enable business transactions. For example, one Bitcoin is equal to another Bitcoin or Re 1 is equal to another Re 1, but NFTs cannot be a medium of transactions due to their uniqueness. However, they are used to represent real assets such as works of art. In fact, celebrities such as Snoop Dogg, Paris Hilton have used NFT to publish their works in the recent past.
Even though crypto has been criticized by governments, banks, traditional businesses, and fund managers around the world, Ehrsam is one of a handful of longtime crypto believers who see crypto technology enabling people to bypass centralized platforms to coordinate. “The world doesn’t change overnight, but you can already see the seeds of exponential growth taking place. So, I think we will live in a future where to coordinate we will not need these centralized platforms today. This is already true for financial services, to the extent that you can be your own bank. You no longer need a central institution to keep your money, ”he added.
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