There are currently thousands of cryptocurrencies all vying for adoption on multiple different fronts, with many being viewed as scams and fundraising schemes, while others cryptos with legitimate use cases struggle to garner any significant support.
From an investment standpoint, investors overwhelmingly seem to favor Bitcoin as the currency of the future, with its market capitalization being over six times larger than that of Ethereum – which is currently the second largest digital asset by market cap.
Despite this, because the crypto markets are still widely considered to be niche, one industry leader is now noting that there are a few key factors that need to be solved before crypto scales to household adoption.
He further goes on to note that the blockchain that is able to first do this will be best positioned to scale crypto to having billions of users.
Ben Horowitz: crypto and early-stage internet industry have striking parallels
In a recent tweet thread, Coinbase CEO Brian Armstrong outlines a discussion he recently had with A16Z founder Ben Horowitz, in which the prominent investor explained that he sees a lot of striking parallels between the early-stage internet industry and crypto.
He first points to Netscape and early protocols as non-scalable gateways to the internet that largely resulted in shoddily designed products that weren’t conducive to positive user experiences.
“At Netscape, they were working with early internet protocols. Things weren’t very scalable (dial up modems), you had to be somewhat technical to figure out how to get online, and early websites were pretty basic (static sites, looked like toys). Sound familiar to crypto at all??”
He further goes on to explain that slow internet speeds and early dial up models are similar to the current scaling problems that many blockchains are currently facing.