Andreessen Horowitz Report: Crypto Not as Chaotic as It Appears

Published at: May 18, 2020

Venture capital firm Andreessen Horowitz thinks the past growth of social media, developers, prices, and startups among cryptocurrencies could mean a crypto cycle favorable to investors in the future.

The United States-based company released a report on May 15 analyzing cryptocurrencies during three cycles, peaking in 2010, 2013, and 2017. According to the firm, the compound annual growth rates (CAGR) from 2010 to the present shows ”choppy yet consistent growth in all of [these] key metrics.”

Source: Andreessen Horowitz

“The 2017 cycle spawned dozens of exciting projects in a wide range of areas including payments, finance, games, infrastructure, and web apps,” says the report. 

Andreessen Horowitz noted that the innovative ideas pushed in the latest cycle have the potential to create a “fourth crypto cycle”, which, if consistent, could see a comparable increase in social media, developer, and startup activity as the price of Bitcoin (BTC) goes up.

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. Technologists and entrepreneurs will continue to push crypto forward in the coming years. We are excited to see what they build.

Not its first crypto rodeo

Cointelegraph reported on May 14 that Andreessen Horowitz released videos from its online "Crypto Startup School," a seven-week education course for industry entrepreneurs that ran until mid-April. The firm was also one of the first venture capital groups to invest in crypto companies, including Libra, MakerDAO (MKR), and Coinbase, among others.

Tags
Bitcoin
Business
Cryptocurrencies
Investments
Andreessen Horowitz
Predictions
Related Posts
Industry at a Crossroads, Crypto Enters Fourth Phase of Development
The crypto space is well over a decade old with more than 5,500 different cryptocurrencies and a market capitalization north of $250 billion. Researchers at American venture capital firm Andreessen Horowitz say the 11-year old industry is in its fourth supercycle with the three previous epochs culminating in distinct developments that have gone on to shape the market as a whole. In a report issued earlier in May, the VC firm posited that despite the apparently chaotic nature of the crypto market, each previous cycle has proceeded in roughly the same order. According to the report, every new stage begins …
Decentralization / May 24, 2020
Crypto will generate more wealth than the internet, says Morgan Creek Capital CEO
By laying the foundations of the Internet of Value, cryptocurrency and blockchain will generate more wealth than Web 1.0 and Web 2.0, said Mark Yusko, CEO of Morgan Creek Capital, in an exclusive interview with Cointelegraph. “We haven't even gotten to the parabolic growth part of Web 3, which is going to create untold wealth,” stated Yusko. In his career as a hedge fund manager, Yusko profited from investing in early internet technologies. He embraced cryptocurrency in 2017 after realizing their potential to power the Internet of Value — a new iteration of the internet that will allow users to …
Technology / Oct. 13, 2021
Guggenheim CIO expects Bitcoin to drop to $20,000
A senior executive at financial services firm Guggenheim Partners — which is planning to seek investment exposure to Bitcoin (BTC) — has argued that BTC is poised to drop to $20,000. Scott Minerd, Guggenheim’s chief investment officer, believes that Bitcoin will not hit another all-time high in 2021, according to a Jan. 21 episode of CNBC's Closing Bell. After hitting $42,000 price level on Jan. 8, Bitcoin is unlikely to climb any higher until 2022, Minerd said: “I think for the time being, we probably put in the top for bitcoin for the next year or so. And we're likely …
Bitcoin / Jan. 21, 2021
Cat got your tongue? Bitcoin critics wither in 2020
Bitcoin (BTC) has had an interesting year, recovering from major sell-offs to eventually skyrocket to new all-time highs. However, Bitcoin's performance and cryptocurrencies increased adoption worldwide have still failed to bring some observers into the crypto camp. Yet compared to other bull run years like 2017, 2020 has seen much less crypto criticism, with a number of Bitcoin naysayers appearing to have somewhat softened their stance towards digital assets. As we look back on crypto in 2020, Cointelegraph has noted some of cryptocurrency's biggest critics. “Bitcoin has no future”: Russian politician Anatoly Aksakov Date of quote: Oct. 23, 2020 Bitcoin …
Adoption / Dec. 21, 2020
KKR leads $350M raise for crypto custody bank Anchorage Digital
Major cryptocurrency custody bank Anchorage Digital has closed a fresh funding round, bringing its valuation to over $3 billion. Anchorage Digital announced Dec. 15 that it raised $350 million in a series D round led by equity investment giant KKR. According to the announcement, this is the first time for KKR to directly invest in equity in a company in the crypto industry. The company invested through its Next Generation Technology Growth Fund II, which is dedicated to developing equity investment in the technology space. “As a pioneer in enabling institutional investors to access digital assets, Anchorage has built a …
Adoption / Dec. 15, 2021