Web 3 — also called “Web 3.0” or “Web3” — is not just a buzzword. It has been viewed as an interestingly crucial step in the revolution of the internet, one that focuses on decentralized protocols and reducing dependency on tech giants. Companies globally are beginning their foray into the Web 3 space hoping to get an early foothold.
The question on everyone’s mind now is whether Web 3 has a lot of potential or it’s just a bubble that’s bound to pop.
Tim O’Reilly, the tech luminary who coined the term Web 2, is skeptical of the potential of Web 3. He cautions investors should be wary of crypto and non-fungible tokens (NFTs) as it could all end in tears.
Tim O’Reilly Sounds Alarm On The Speculative Crypto, NFT Bubble
Speaking to CBS MoneyWatch, Tim O’Reilly noted that the Metaverse has a lot of bubble hype and is miles away from “prime time”. This is because it’s difficult to convince people of a thing when its commercial value is dependent on them believing in it.
Although he admits that the crypto and NFT sectors are flourishing, O’Reilly thinks the parabolic growth is not sustainable in the long term. “I believe that it really is a pretty serious speculative bubble on a very small foundation,” the internet guru said.
In essence, O’Reilly feels we are currently in the middle of a bubble. He then drew comparisons to the dot com bubble “where there’s all kinds of crazy startups getting outrageous valuations, with less to show for it.”
O’Reilly described Web 3 as the decentralized iteration of the internet that integrates the use of blockchain and cryptocurrencies. Regarding blockchain technology and generally the market built around Web 3, O’Reilly says it’s fascinating but there is nothing much to it besides a bunch of enthusiastic technical individuals.
To that end, he tells investors to be prepared for the crash after the current bubble pops — but there is a small silver lining. Cryptocurrency and NFT markets could attract a whole lot of capital and talent thanks to the bubble valuations.
Notably, O’Reilly is not the only prominent person who doesn’t believe in the idea of Web3 and decentralized internet. Former Twitter CEO Jack Dorsey — now exclusively CEO of Block — and Tesla/SpaceX CEO Elon Musk have both previously criticized the concept.