Venture capital firm Andreessen Horowitz believes that past growth in social media, developers, pricing and startups among cryptocurrencies could mean a crypto cycle that will be favorable to investors in the future.
The US-based company published a report on May 15, analyzing cryptocurrencies during three cycles, which reached the highest values in 2010, 2013 and 2017. According to the company, the composite annual growth rate (CAGR) of 2010. so far show ” more stable but consistent growth in all [these] key indicators.”
“The 2017 cycle has spawned dozens of exciting projects in a wide range of areas, including payments, finance, games, infrastructure and web applications, ” the report said.
Andreessen Horowitz notes that the innovative ideas ‘pushed’ into the latest cycle have the potential to create a ‘fourth crypto cycle’ which, if consistent, could see a comparable increase in social media activity, developers and startups, while the price of Bitcoin (BTC) will rise.
Although cryptocurrencies seem chaotic, in the long run they have generated steady growth in new ideas, code, projects and startups – the main drivers of software innovation. Technologists and entrepreneurs will continue to push cryptocurrencies forward in the coming years. We all need to worry about what they are building.
This is not the first time they have participated in the crypto space
On May 14, it was announced that Andreessen Horowitz had released videos from his online course “Crypto Startup School”. This is a seven-week training course for entrepreneurs in the industry, which lasted until mid-April.
The company was also one of the first venture capital groups to invest in crypto companies, including Libra, Maker DAO (MKR) and Coinbase.