The numbers show investing in cryptocurrency is similar to investing in the internet in the 1990s. But, in this video clip from "The Crypto Show" on Motley Fool Live, recorded on May 18, Fool.com contributor Travis Hoium discusses how there will likely be many innovative crypto uses and NFT projects in the future that will make them more enticing to investors.
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Travis Hoium: There are only between 7 and 50 million active Ethereum (ETH -0.64%) users and they use Ethereum because this is the most advanced chain on where a lot of the activity is taking place today. In the internet, that's about where we were in 1995. We say this all the time. It's early. This is like investing in the internet in the '90s.
Here's the data behind that. There are so few users. Now, think about the number of developers. I think I've got that on the next slide, is numbered in the thousands. Ethereum has 4,000 monthly active developers, Solana (SOL -2.71%) has 1,000, Bitcoin (BTC -0.92%) has 500. That's nothing. That's a small division at a tech company. This is the interesting stuff that's going on. Then the next piece is the fees. I think this goes to the thoughts that I have on which blockchains are going to be most used in the future.
Ethereum, got such a big head start and they talk about this in the report, but that people are willing to pay $15.2 million as a whole in fees or gas to use the Ethereum blockchain because it's where stuff is going on. Solana is a lot cheaper, I think long-term as we get to using blockchain for tickets and rewards for going to a restaurant or something like that. We're going to have to use some of these cheaper blockchains, but I think those are just interesting data points to have.
The broad theme here in cryptocurrency and NFTs, and this is exactly what A16Z is basically saying is bet on builders, bet on people that are building things which is one of the things we tried to do with this show is bring interesting things to you that you may not see if you're not in this world every day because there's cool stuff going on. If you know about some of the innovative companies that are being built before they hit the market, that's a really good position to be in.
