No doubt bitcoin’s been doing rather well as of late, but according to executives at Andreessen Horowitz, another breakout is on the horizon, and bitcoin could spike to levels we haven’t seen in some time.
Andreessen Horowitz Predicts Big Things for Bitcoin
Both Chris Dixon and Eddy Lazzarin – partners at the investment firm – wrote in a blog post that a “fourth crypto cycle” is about to emerge. They believe that bitcoin’s price is going to get much higher in the coming months, and that those who invest now will be making a wise financial decision. In their blog, they write:
The 2017 cycle spawned dozens of exciting projects in a wide range of areas including payments, finance, games, infrastructure, and web apps. Many of these projects are launching in the future, possibly driving a fourth crypto cycle… Even though crypto cycles look chaotic, over the long term, they’ve generated steady growth of new ideas, code projects and startups. The fundamental drivers of software innovation. People who’ve been in crypto for a long time view the space as evolving in cycles, alternating between periods of high activity and ‘crypto winters.’
The 2017 period they’re referring to involves a time when cryptocurrencies – bitcoin in particular – shot up to levels nobody saw coming. The world’s number one cryptocurrency by market cap ultimately reached the $20,000 mark by the time the Christmas holiday rolled along, a near $19,000 surge over the past 12 months. At the time, initial coin offerings (ICOs) and new crypto-related businesses were popping up left and right.
Both Dixon and Lazzrin went on to say:
Anecdotally, of the hundreds of conversations with crypto founders we’ve had, we often hear stories like, ‘I heard about crypto in [2011, 2013, 2017] when the prices spiked, and everyone was talking about it. At first, I thought it was just about money, but then I started reading white papers and blog posts, learned more about the potential of the technology, and eventually fell in love with it.’
Many analysts initially predicted that bitcoin would incur another series of heavy spikes following its recent halving. The currency had its digital rewards dropped from 12.5 BTC to about 6.25 BTC at press time, thereby causing it to become rarer and making it appear more attractive to investors.
The Halving Could Produce Later Results
Strangely, the event itself hasn’t really amounted to much yet, though it could be too early to tell what may happen. In 2016, the currency halved for the second time, and investors didn’t see much action until the following year, so perhaps this latest event is simply getting bitcoin ready for something big, which is what Andreessen Horowitz appears to be suggesting.
Recently, the company announced that it was closing its second crypto fund, which would be worth more than $500 million.