Cryptocurrencies have been on a roller coaster ride over the past year, and the latest plunge that has wiped more than $1 trillion off the crypto space- has many investors wondering if the market will ever recover. However, one top central banker believes that there is still potential for cryptocurrencies to rebound—and even eclipse traditional companies like Amazon (NASDAQ:AMZN) and eBay (NASDAQ:EBAY).
In a recent discussion at the Point Zero Forum in Zurich, Jon Cunliffe, deputy governor of the Bank of England, compared the current crypto market crash to the dot-com crash of the late 1990s.
While many dot-com companies went bust during that time, a few survived and went on to become major successes.
Cunliffe believes that a similar scenario could play out in the crypto world, with a handful of coins eventually evolving into the “Amazons and eBays” of tomorrow.
“The analogy for me is the dot-com boom when $5 trillion was wiped off values,” Cunliffe said, as reported by Bloomberg. “A lot of companies went, but the technology didn’t go away.”
He added that about a decade later, “Those that survived—the Amazons and the eBays—turned out to be the dominant players.”
📸Our CEO @tokarev_d at the @pointzeroforum earlier today, discussing crypto liquidity as the next step to Tokenisation with @SDX_global's David Newns, @QCPCapital's @dariussitzl, @bankofengland's Sir Jon Cunliffe and @blockchain's Charles McGarraugh. pic.twitter.com/9NMd1p39y2
— Copper.co (@CopperHQ) June 22, 2022
While it can be hard to keep track of the changing crypto landscape and understand what the future might hold for cryptocurrencies, Cunliffe noted that no matter what happens to cryptocurrencies in the short term, he expects “crypto technology and finance to continue.”
“It has the possibility of huge efficiencies and changes in market structure,” he said.
Of course, only time will tell if Cunliffe’s prediction will come true or not. But for now, it’s certainly food for thought for those who are still holding onto their digital assets.
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