Bitcoin and NFTs: Coinbase Founder Warns About the Possible Downfall

The value of Bitcoin has been steadily declining recently

Recently, the cryptocurrency prices and Bitcoin in specific have been struggling. The combined value of the cryptocurrency market went lower than $1.5 trillion. In this regard, Fred Ehrsam, the co-founder of Coinbase has stated that within 3-5 years, the value of crypto and NFTs might fall.

 

Bitcoin is declining

The comments of Fred Ehrsam come from the fact that the value of Bitcoin has been steadily declining recently. While there was a short spike due to tweets from Elon Musk, the overall trends have not been very promising.

Regarding this, the Coinbase co-founder said, “There will be millions and millions of cryptocurrencies and crypto-assets, just like there were millions and millions of websites. Most of them won’t work.”

Currently, the Bitcoin value is moving in a “death cross” pattern. This occurs when the 50 days average goes lower than the 200 days average. However, such a pattern in the Bitcoin value was also seen during March 2020. Eventually, there was a surge in the price of Bitcoin rather than a downfall.

 

While the Coinbase co-founder did warn about the possibility of cryptocurrencies losing value in 5 years, he also stated the possibility of long-term gains from meme coins. In specific, meme coins such as Doge have significantly increased the popularity of crypto recently.

Regarding this, Fred stated, “If crypto has taught us anything, it’s never to dismiss a good meme that couldn’t later manifest into more concrete progress.”

 

Apart from warnings about Bitcoin, the Coinbase co-founder has also hinted at the possibility of NFTs losing their value. This might be a fair opinion, given the fact that many experts believe NFTs to be a bubble that will eventually burst.

The Coinbase co-founder linked the recent boom of NFTs to the early internet days when multiple Silicon Valley companies overvalued, eventually getting folded. According to him, NFTs might be worth nothing within this decade.

 

Just recently, the original WWW source code went on auction as an NFT. Whether or not the value of such assets will rise over time is open to speculation. However, there is some weight in what the Coinbase co-founder thinks about the entire crypto and NFTs market.

 

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