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- Most cryptocurrencies and crypto-assets will fail, according to Coinbase co-founder Fred Ehrsam, and 90% of NFTs will have little to no value in three to five years
- Since bitcoin’s inception in 2009, thousands of cryptocurrencies have been created, with crypto statistics provider CoinMarketCap presently monitoring just over 10,000 different coins
- Ethereum, the second-largest cryptocurrency behind bitcoin, has established itself as a cryptocurrency powerhouse
Bitcoin and cryptocurrency prices have been falling this week, with the total value of the crypto industry falling below $1.5 trillion, down from $2.5 trillion in May. The bitcoin price has resumed its drop over the last several days, going back around $30,000 per bitcoin after receiving an unexpected boost from Tesla billionaire Elon Musk last weekend. Now that the price 50-day moving average has fallen below the 200-day moving average on bitcoin charts, a pattern known as the death cross, Coinbase co-founder Fred Ehrsam has warned that most cryptocurrencies and crypto-assets won’t work and 90 percent of NFTs will have little to no value in three to five years. Despite its foreboding moniker, Bitcoin’s death cross looks to be a lagging price signal.
The previous time the trading pattern appeared, in March 2020, signaled the start of a massive bitcoin bull run that helped even minor cryptocurrencies reach new highs. Investors should avoid betting on NFTs, according to Ehrsam (non-fungible tokens). The popularity of NFTs, which utilise bitcoin technology to tokenize and sell various kinds of digital real estate, from artwork to tweets, memes, and YouTube videos, has surged in recent months—though evidence shows the market is already considerably down from its early-May peak.
Coinbase, a bitcoin and cryptocurrency exchange located in San Francisco, went public this year with a whopping $100 billion valuation, but its market worth has since plummeted by a third due to dwindling enthusiasm among regular traders and worldwide regulatory pressure. Thousands of cryptocurrencies have been produced since bitcoin was established in 2009, with crypto statistics source CoinMarketCap now tracking just over 10,000 distinct coins. Renowned crypto writers believed that things will change for cryptocurrency, very soon, Ehsram, who left Coinbase in 2017 and went on to create the blockchain investment firm Paradigm, told Bloomberg this week, predicting that many of the smaller coins will perish. Millions upon millions of cryptocurrencies and crypto-assets will exist, just as there were millions upon millions of web pages. The majority of them aren’t going to work.
The ICP token, which made news when it raised $4.1 billion ahead of its launch in 2018, is down over 90% from it’s all-time high price set shortly after its introduction in May, while EOS, which made headlines when it raised $4.1 billion ahead of its launch in 2018, is trading 80% lower. Some, like ethereum, the second-largest cryptocurrency behind bitcoin, with a market value of $250 billion compared to bitcoin’s $660 billion, have become cryptocurrency stalwarts, while others, like EOS and, more recently, internet computer, had splashy debuts only to fade away over time.
With a background in journalism, Ritika Sharma has worked with many reputed media firms focusing on general news such as politics and crime. She joined The Coin Republic as a reporter for crypto, and found a great passion for cryptocurrency, Web3, NFTs and other digital assets. She spends a lot of time researching and delving deeper into these concepts around the clock, and is a strong advocate for women in STEM.
