When you look at the proliferation of alt coins that have come to market, there is always concern about a bubble and also outright scams.
BusinessInsider.com published an article that quoted VC Bill Gurley and his opinion of the recent rise in ICO’s. The article is a good read whether you are a bull or a bear on crypto.
From the article:
- Smart people like VC Bill Gurley are beginning to worry that cryptocurrency ICOs are a bubble.
- People are investing in Bitcoin and other digital coins even though they hold no equity value and offer no claims on any kind of underlying asset.
- On that definition, ICOs are actually worse than dot-com stocks in 1999 — at least back then investors owned a piece of a company with a revenue stream.
- Crypto bulls keep saying that Bitcoin is “an established ‘store of value.'”
- The problem is that the value being stored is simply everyone else’s agreement that there must be value here. There is no other asset. And that is what a bubble looks like.