Speaking at Coinbase’s Q1 earnings call, Armstrong said:
“In my mind, this [crypto] is a little bit like the early days of the Internet, where you saw the birth of e-commerce in the late ’90s or early 2000s, and now fast forward 20 years, e-commerce, I think, is something like 15% of global GDP.”
“And I think if you fast forward 20 years from here, the crypto economy is going to represent probably a large portion like that, 15% of global GDP.”
He also noted that most companies would end up using crypto in some way in the future, just like they had to adopt the internet.
Coinbase in bear market conditions
In the last seven days, the total market cap lost more than 33% of its volume, equalling $570 billion. Some say the bear market is officially here. Especially after the LUNA crisis, the overall market sentiment took a sharp negative turn.
Coinbase’s Q1 earnings report also displayed a drop in numbers. The numbers showed a 53% net revenue down from the previous quarter, which indicated a net loss of $430 million. Moreover, the report included bankruptcy wording which set off red flags in the community.
Nevertheless, during his speech at the Q1 earnings call, Armstrong said
“So ironically, I’m actually — I’ve never been more bullish on where we are as a company. And I think it’s really important to separate our performance, how are we executing towards our goals versus how is the broader market doing.”
He further elaborated:
“As the industry matures over time, we’re going to be a very profitable company and more consistently profitable. But for now, regardless of whether the market is up or down, we’re going to keep building.”
According to Crypto.com’s CEO Kris Marszalek, despite the heavy conditions, the industry will triumph.
It’s a really rough day for crypto.
The biggest difference between 2018 and what is happening today?
Nobody is questioning crypto’s survival. The industry will come back stronger. It always does.
Stay safe through the storm 🙌
— Kris | Crypto.com (@kris) May 12, 2022
While accepting that 95% of projects will wither, Terra co-founder Do Kwon also agrees that the market will get back on its feet.
In other words, Armstrong is not the only one who holds on to their optimism. Regardless of today’s conditions, Armstrong could be right with his predictions for 20 years into the future.