This year marks the 30th anniversary of the first website on the World Wide Web. That means a person has to be nearly half a century old to clearly remember the progress of the patchwork, the wrong starts and stops, and the trial and error that ultimately gave us the foundation for life in the 21st century .
In 2021, we’ll take it for granted that the internet is a reality, but it has taken decades to get to that point. Over the years the barriers to adoption collapsed and there were clear indications that this new technology would fundamentally change the way the world lives and works.
Now, the rise of Bitcoin (BTC), Coinbase’s successful initial public offering, and the appointment of MIT blockchain professor Gary Gensler to head the US Securities and Exchange Commission; They offer clear indications that another technology will be transformative to a similar extent: cryptocurrency.
Do these recent events mean the cryptocurrency space is nearing its “Netscape moment”?
In the early 1990s, the Internet consisted of connecting three main services through a telephone modem (AOL, CompuServe and Prodigy) that was what we called that “World Wide Wait”, This shows the headache caused by loading these rudimentary pages. For those of us old enough to partake in the first few days of transition until we reach a consumer internet, we remember well the moment when everything changed.
It was in August 1995 that Netscape released its flagship product, Navigator, the first browser that anyone could use to surf the Internet without paying for World Wide Wait services. This was the moment when the advent of the internet reached everyone and sparked a madness that lasted until then Dotcom burst in April 2000 the template was created for investors and consumers to think about the Internet and the World Wide Web.
The Cryptocurrency Timeline: Are We There Yet?
It is difficult to see tomorrow’s certainty, or at least tomorrow’s narrative that describes today, when you are preoccupied with the uncertainty of the present. Perhaps there is no end to technology as a whole, which makes it as mysterious and enticing as the world of cryptocurrencies.
However, it is difficult not to see the parallels between the current state of adoption of cryptocurrencies and the Internet as it existed in 1995. Despite numerous news cycles obsessed with price booms and busts, cryptocurrencies still remain the playground for early adopters and geeks in terms of actual financial and technological usage. Many institutions and professional investors are interested in playing with them, but the vast majority of major institutional financings have not yet looked seriously at them.
I think 2021 will be the year that all of this will change. The global COVID-19 pandemic has resulted in massive fiat money pressures around the world. The cryptocurrency market has a market cap of around $ 2 trillion, and Bitcoin is making headlines every day, possibly more regularly and for a longer period than during the 2017-2018 boom.
This new cycle of hype coincides with the gradual rise in general awareness of cryptocurrencies, which has been increasing since 2017-2018, and professional investors and institutions are even more ready to dive into the waters of cryptocurrency, even if it just means creating a cryptocurrency Bitcoin Exchange Traded Fund.
History doesn’t repeat itself, it just rhymes
Cryptocurrencies seem to be inevitable, id est, vires in numeris. The mathematical school of Thales and Satoshi Nakamoto should also take into account this old sentence of the empiricist Immanuel Kant. “The crooked wood of mankind was never made into anything straight.” We cannot overlay the internet timeline with cryptocurrencies and say: “Ah! Now the time has come.” Some rollout and development schedules may accelerate further while others lag behind.
External events such as a pandemic can also intervene. Although it was originally thought that this could be an event that could stop cryptocurrency markets and innovation, the price of the legendary Bitcoin increased tenfold in the first year due to the initial financial panic and the need for liquidation. ± or the pandemic. Governments are putting themselves financially at risk by issuing debt, and people online delved deeper than ever, clinging to the cryptocurrencies that dominate much of online life and discussion.
What is certain is that in order to enjoy this “Netscape moment”, especially in the western world, cryptocurrencies need the support and cooperation of the US government. The Netscape moment will come when the US government, especially the SEC, comes out with clear regulations on fundraising, custody, know your customer guidelines, taxes, investments and transfer rules. It would be even better if the SEC declared that cryptocurrencies are not a security, but a new asset class with its own rules.
Gensler, who was recently named chairman of the SEC, has made it clear that he sees the potential and value of new digital currencies. He recently announced that a clear settlement is being negotiated for the room that could open the doors to billions of dollars of institutional capital. This would be a breakthrough that could stabilize the day’s IPOs and drive Bitcoin prices higher.
The United States became the leader of the internet movement because we used our wisdom to grow e-commerce businesses without the burden of sales taxes in state and local jurisdictions. This allowed the industry to grow into the titan it is today. Even if Al Gore will forever mourn the day that recognizes the US government’s efforts to facilitate national networks and technologies around the world High Performance Computing Act of 1991, The fact is, the US government’s pro-internet policies have helped it grow so fast. Marc Andreesen, who created the “Netscape Moment” and can claim at least part of his contribution to the invention of the Internet as we know it, said so.
Today the United States government is at a similar crossroads. Countries like Switzerland, Singapore, Malta, Panama, and other free market economies have already seen the light of day, and together we hope that the powerhouses are ready to see that it is desirable to allow the cryptocurrency industry to thrive. Investor-friendly regulations in the US will allow this country to maintain its leadership position in terms of innovation and technology (please note, Gensler).
If the United States is to repeat the history of the last 25 years, a history in which the country ruled as the world leader in technological innovation, it must repeat the shapes of its early pro-internet policies and pave the way for the US to use new crypto technology, which will prevail just as much as Netscape.
This article does not contain any investment recommendations or recommendations. Every trading and investment step is associated with risks. Readers should do their own research in making their decision.
The views, thoughts, and opinions expressed herein belong solely to the author and do not necessarily reflect or represent the views and opinions of Cointelegraph.
Charles H. Silver is the CEO of Permission.io, a technology provider for permission-based advertising solutions. Charles previously founded RealAge.com, a company that uses big data to connect people with entitlements on an entitlement basis. Charles also co-founded Reality Shares, an SEC-registered investment advisor with five exchange-traded funds, and Blockforce Capital, a multi-strategy cryptocurrency hedge fund. Charles graduated from the University of Michigan and worked for a United States Congressman.