Venture capitalist and cofounder of Union Square Ventures (USV), Fred Wilson in a personal blog AVC which goes back to 2003, shared his vision of the situation in the cryptocurrency market. The basis of assessment of market he took the model of Carlota Perez, according to which the market now is the so-called stage of the installation, or installation (installation phase). The “big Bang” for it was the publication of the white paper of bitcoin Satoshi Nakamoto almost ten years ago.
But, says Wilson, is still on the the stock market appeared the consensus systems that can scale to transaction rates that are comparable to popular web applications and to be energy efficient. There are no development tools that would make the process of creating applications is simple, fast and secure. Finally, there are hundreds of millions of users of cryptocurrency wallets that should appear so you can move on to the deployment phase (deployment phase).
Along with this, says Wilson, there is one thing that has become the hallmark of the classical phase of the installation: it is a frenzy (frenzy) innovation and financial capital that created the boom of the ICO.
And here is meant not the amount of capital that came in cryptocurrency company traditional means (venture capital, business angels, etc.). Talking about crazy business, has created thousands of projects around the world that have led to a number of innovations that have appeared on the market in a very short period of time.
As with any new market, most of these projects and companies will fail. Some of them don’t have the product. Some would create a product that does not work or works but does not become popular. The probability of failures for these projects is very high, but among the thousands of startups will be the next Google, Amazon, Facebook, Twitter, Dropbox, Uber and Airbnb. The role of cryptomnesia in such a situation is to understand these projects and decide which ones have the best chance to become winners.
And, according to Wilson, although USV invests in the industry since 2011, the Fund has never been so difficult as now. It’s like that “drink the water of their fire hose”, due to the constant appearance on the stock market many high-quality projects and good teams. A team of investors USV is working on this pressure of innovation that will cause change, but Wilson recognizes that to keep pace with the current madness is very tiring.