Ari Paul: only bitcoin can survive this cryptocurrency winter

The founder of the investment company Blocktower compared the current bearish trend in the market to the financial crisis of the 2000s, and bitcoin to Amazon, which managed to survive the crisis.

In a series of tweets, Ari Paul compared the situation in the cryptocurrency market to the dot-coms of the early 2000s. The businessman is convinced that cryptocurrencies are still at an early and risky stage of development. Paul noted that Solana network outages, delays in the transition of the Ethereum network to the Proof-of-Stake consensus algorithm, and problems with scaling the Bitcoin network are not so painful during a bullish trend. But when the time comes for a bearish trend, people perceive the same factors differently, less optimistically.

«People are holding billions of dollars worth of junk. What is this abstract optimism? Over the past six months, we have not learned anything fundamentally new about cryptocurrencies. Cryptocurrency pyramids are being revealed, unprofitable business models are leaving the market… Can current valuations be considered reasonable in light of current fundamentals? Will the existing market leaders remain afloat in 5 years or 10 years?» asks Ari Paul.

The Blocktower founder suggested that over time, the current market leaders will be replaced by other cryptocurrencies, but bitcoin may be an exception: «It is the only crypto asset that does not compete with others in terms of technology or products. This is primarily due to its security and stability. If bitcoin fails, it will not be because it will be replaced by something better. The probability that bitcoin will fail within 20 years is 50%, but it has a much better chance of winning than others. Bitcoin reminds me of the rise of Amazon.»