The price of bitcoin, ethereum and other major cryptocurrencies are meanwhile struggling, with the bitcoin price failing to regain ground over $60,000 per bitcoin and ethereum\’s ether dropping back from around its all-time highs.
Musk said via Twitter that web3—the idea that a decentralized version of the internet that some think could use crypto technology will eventually replace the Silicon Valley-centric web 2.0—\sounds like BS\ and flagged dogecoin in a reply to a report that high ethereum transaction fees are locking investors out of decentralized finance (DeFi).
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\Average venture returns for investments made in the 2020s are going to be much worse than those from the 2010s,\ predicted Sam Altman, the chief executive of OpenAI and a legendary Silicon Valley investor. \There\’s a flood of capital, and I have never heard so many price-setting VCs openly say they\’re willing to accept much lower return targets.\
However, Altman added \web3 might still have 2010s-like returns … but most VCs will miss it.\
Musk responded, saying \web3 sounds like BS\ and \I thought nothing could be nuttier than ‘99,\ referring to the late-1990s dot com bubble that saw investors pour billions of dollars into internet-based companies that eventually collapsed.
Meanwhile, Musk continued his support of meme-based dogecoin, tweeting \dooooge\ in response to a report from the crypto news outlet Coindesk that eye-watering ethereum transaction fees are preventing smaller investors from being able to access DeFi exchanges.
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DeFi, using crypto technology to recreate traditional financial services without the need for banks or financial institutions, has seen a surge of interest in over the last years as investors pile into the space.
Musk\’s backing of dogecoin this year even after Tesla added billions of dollars worth of bitcoin to its balance sheet has divided the crypto community.