Will the crypto crash bring forth the tech giants of tomorrow?

This is what the Deputy Governor of the Bank of England, Jon Cunliffe, considers, drawing a parallel between the crisis of the dot-com bubble and the recent crypto-crashes.

One can look at the current state of the cryptocurrency market, weakened by two crypto crashes in the space of two months, from two different perspectives: seeing the glass half empty or half full.

The Deputy Governor of the Bank of England, Jon Cunliffe, is one of those who sees the glass half full. Although the cryptocurrency market has gone from 3,000 billion dollars in capitalization last November to 954 billion dollars today according to data from coinmarketcap, Jon Cunliffe still believes in the potential of certain players.

Indeed, if certain companies are in turmoil in a context of market tension, such as the Terra ecosystem or even loan platforms such as Celsius, Finblox or Babel Finance, those who survive these crises could become the giants of the technology of tomorrow.

“Technology has not disappeared”

Jon Cunliffe notably draws a parallel between the recent crypto-crashes and the collapse of the dot-com bubble in the early 2000s, which allowed today’s technological giants to emerge.

“The analogy for me is the dot-com boom, when $5 trillion was wiped out of values. A lot of companies disappeared, but the technology didn’t disappear. It came back 10 years later. , and those that survived – Amazon and eBay – turned out to be dominant players,” the latter told the Point Zero Forum, a cryptocurrency conference held in Zurich on Wednesday, as reported by Bloomberg.

“Whatever happens over the next few months to crypto-assets, I expect crypto technology and finance to continue. They have the potential for huge efficiencies and changes in the structure of the market,” he added.

We can therefore wonder: who will be the new tech giants? In the current context, a few companies seem to come out of the water, like the FTX cryptocurrency exchange platform – which is currently trying to save BlockFi – or the cryptocurrency giant Binance which wants to recruit 2,000 additional employees. while all of its competitors are downsizing.

In the space of a few months, the latter seems to have changed his mind about cryptocurrencies. In December, Jon Cunliffe warned of the risk of contagion between the cryptocurrency sector and traditional finance, in the event of a sharp fall in cryptocurrencies.

“Their price can vary quite considerably and they could theoretically or practically drop to zero,” he said in an interview with the BBC. “The time, I think, where you can worry is when they enter the financial system, when a big correction in prices could really affect other markets and affect established players in financial markets. “.

“No intrinsic value”

Despite this shift in perspective, the Bank of England continues to take a still skeptical view of cryptocurrencies.

On June 13, the Governor of the Bank of England, Andrew Bailey, thus declared before the British Parliament that cryptocurrencies have “no intrinsic value” following the new collapse on the cryptocurrency market, in particular agreeing with the remarks of Christine Lagarde, President of the European Central Bank.

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