The cryptocurrency market has grown significantly over the years and experts believe that the market is still in its early stages.
Brené Brooks, CEO of BitFury and former US acting controller of the currency, said that cryptocurrencies are not here to replace the US dollar. They told CNBC’s Ylan Muik Monday at the Aspen Ideas Festival.
When asked about his views on cryptocurrencies in general, Brooks said;
“Most of crypto is about replacing the centralized banking system with a network that allows user control versus bank control… crypto assets whose prices are like internet stocks. If you think there’s going to be high internet traffic, that’s it. It’s like betting on Google; if you short it, that’s people going back to the post office, right? But it’s not like Ethereum or Ripple or anything else trying to replace the US dollar, it’s Trying to change the system of transmitting value.”
While some people think that cryptocurrencies are here to replace fiat currencies, some experts believe that this is not the case.
Cryptocurrencies are designed to outperform the traditional financial system, ensuring that people from all parts of the world enjoy financial services. Furthermore, with cryptocurrencies and blockchain technology, financial transactions are cheaper, faster and more secure.
Currently, there are over 20,000 cryptocurrencies, according to Data obtained from coinmarketcap, Some experts believe it is too much. Bertrand Perez, CEO of the Web3 Foundation, told CNBC that;
“We’re at a stage where there’s basically too many blockchains, too many tokens. And it’s confusing users. And it’s also bringing some risk to users. Like at the beginning of the internet, you had a lot There were all dot-com companies and a lot of them were scams and not bringing any value and everything was cleared up. And now we have a lot of useful and legitimate companies.”
The cryptocurrency market has been in a bearish trend since the beginning of the year. The total cryptocurrency market cap reached an all-time high of $3 trillion in November 2021.
However, it has since declined by more than 65%, with a total market cap of about $900 billion now.