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Crypto Venture Capitalist: Bitcoin Is ‘Greatest Store of Value Ever Created’


On Wednesday (21 November 2018), Lou Kerner, the founding partner of crypto venture capital firm CryptoOracle, called Bitcoin the “greatest store of value ever created,” and said that “it should surpass gold over time.”

Kerner, who has an MBA from the Stanford Graduate School of Business and used to work as an equity analyst for Goldman Sachs & Merrill Lynch, has been in the crypto space since 2013. Then, in December 2017, he and James Haft co-founded CryptoOracle.

On Wednesday, Kerner was interviewed on CNBC show “Worldwide Exchange” by anchor Brian Sullivan.

Kerner, who is a firm believer in the store of value use case for Bitcoin, started by explaining that crypto has been so weak because “for most of it, there’s no underlying value outside of confidence.” As for Bitcoin, he said:

“We think it’s going to replace gold eventually. Gold is an $8 trillion thing… I think it’s a store of value. I think it’s the greatest store of value ever created, and it should surpass gold over time.”

He then explained the importance of patience and keeping things in perspective:

“It’s not going to happen overnight. And for anybody who’s been in crypto for a while, there was a day in 2013 where we were down 70%. So, nobody likes being down like this, but it’s part of what investing in crypto is all about.”

Kerner next explained that we should bear in mind that the kind of volatility we are seeing in the crypto market was also there in the early days of the internet revolution in the world of stocks:

“If you go back to the internet bubble, which I think is what a lot of us people in crypto look at for direction, Amazon, arguably, one of the greatest companies in the history of mankind, was down over 95% over two years.”

Kerner also said that Amara’s Law (named After Roy Amara, an American researcher, scientist, and futurist who worked at the Stanford Research Institute in the 1970s), applies to crypto. Amara’s adage about forecasting the effects of technology states:

“We tend to overestimate the effect of a technology in the short run and underestimate the effect in the long run.”

Finally, Sullivan asked Kerner what was behind the major decline in the Bitcoin price that we have witnessed over the course of 2018.

Kerner’s answer contained an inspirational message for HODLers:

“The early people thought it was going to be a new form of cash, and because of the governance problems with Bitcoin, it actually struggles to evolve. But it doesn’t need to evolve to be a better store of value, to be better than gold. And so, it’s a confidence game, people get excited, people get ahead of themselves, people get depressed. If you believe in the long term and you hold, or what we in crypto call HODLing, ‘holding on for dear life’ because of the volatility, you know, over any two-year period, HODLers have always been rewarded.”

Source:  cryptoglobe


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