Digital currency hedge fund BlockTower Capital cofounder Matthew Goetz says Bitcoin (TIKER: BTC.EXANTE) and other cryptocurrencies are like the Internet in the 1990s, The Cointelegraph reports.
According to him, bets during the early days of the Internet were risky just like the investments in the digital currency market as of October 2017.
Goetz insists that the claims that the virtual currencies are one of the disruptive technologies of today are correct.
“You could be right on the thesis that cryptocurrencies are transformative and you could make what you think is the right bet at the time, but remember one time you had Yahoo and then this thing called Google (TIKER: GOOGL.NASDAQ) came along,” Matthew Goetz said.
Goetz argued that Bitcoin will not remain as the top-dog digital currency forever despite its phenomenal rise. He added that Bitcoin and the other virtual currencies can be toppled by a cryptocurrency with superior technology.
He claimed, however, that in order for a rival cryptocurrency to replace Bitcoin, it should have significantly better capabilities than the crypto top dog. He cited as an example how Facebook (TIKER: FB2A.XETRA) has toppled MySpace as the favoured social media site.
“It’s something like Facebook. If someone creates a new Facebook that has slightly better features, say 10 percent better. That’s great, but network effects are strong. So, that new thing isn’t going to kill Facebook,” Goetz stated.