O’Reilly founder and open source advocate Tim O’Reilly compared the development of collectible tokens and Web 3.0 to the dot-com era and believes that these industries will collapse.
Tim O’Reilly is known for being the first to introduce the concept of “Web 2.0”, describing it in the article “Tim O’Reilly – What Is Web 2.0”, which was published in 2005. Many believe that Web 3.0 technologies will be the next stage in the evolution of the Internet, so large companies are exploring their possibilities, including YouTube and Meta.
However, O’Reilly says that amid the hype around NFTs and the metaverse, some startups are getting “sky-high” ratings, while they have little to show, and this should be alarming. O’Reilly noted that Web 3.0 has promising prospects, but it is still far from being realized.
“It is very difficult to convince a person of something when his financial benefit depends on the trust of other people in any project,” he said.
O’Reilly compared the NFT and Web 3.0 industries to the dot-com bubble of the early 2000s and looked back at the FTP and Telenet packet-switched networks that were created before the Internet. Their features were rated incredibly high, even though they weren’t really ready for their “prime time,” the publisher said.
He added that it wasn’t until the dot-com crash that people saw really significant media innovations, such as e-commerce with Amazon. Therefore, people will not know what Web 3.0 is until the current bubble bursts, as in the case of dot-coms, O’Reilly believes.
The publisher believes that there is a lot of interesting things in the blockchain, however, speculation with cryptocurrencies that operate on the basis of this technology “shadows” it.
“The NFT is a speculative bubble on a very small foundation. Non-fungible tokens do attract a lot of capital and talent, but it’s better to think of them as a gamble rather than an investment. Imagine that you are betting on a horse race. If you guessed right, you might make a lot of money,” said O’Reilly.
Cardano founder Charles Hoskinson also believes that people need to overcome the NFT craze. However, American entrepreneur Paul Graham does not agree with the statements of opponents of the NFT, who call this industry a fraudulent one. Graham believes that in the future, this industry will pay off, despite the current blunders.
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I am Derek Black, an author of World Stock Market. I have a degree in creative writing and journalism from the University of Central Florida. I have a passion for writing and informing the public. I strive to be accurate and fair in my reporting, and to provide a voice for those who may not otherwise be heard.