Saturday February 27, 2021
Bitcoin (BTC) $47,184.00   Ether (ETH) $1,495.71
  • Events
  • News
    • Blockchain Technology
    • Capital Raising
    • Crypto Exchanges
    • Crypto Payments
    • Gaming & Betting
    • Networks & Protocols
    • Security
    • Vendor Technology
    • Wallets
NEWSLETTER SIGNUP
EXCHANGE 300+ COINS
CryptoNinjas
  • Crypto & Blockchain Links
  • Real-Time Market Data
  • Bitcoin ATM Map
  • Token Offerings/Listings
No Result
View All Result
CryptoNinjas
No Result
View All Result
Home Blockchain Assets

Bitcoin: lost illusions, uncertain hopes

Published by CryptoNinjas.net
06/04/2018
Bitcoin: lost illusions, uncertain hopes

In those distant (as it now seems) times when veteran geeks were only getting interested in crypto, Bitcoin was seen as “digital gold” of sorts. Those early enthusiasts waxed poetic about it as an alternative measure of value created exclusively for the upcoming digital age and well protected by the latest cryptographic mechanisms.

Sure enough, Bitcoin did seem to have unique features that play in its favor with confronted with gold. The number of Bitcoins is limited, its blockchain is decentralized, all transactions and emission are transparent; it can adapt to the network environment of the future; it’s completely independent and can’t be subjected to any censure; it knows no borders; finally, it’s novel and bold. And while some of its early adopters may have overestimated the potential of these features, this picture wasn’t too far from the truth.

Nevertheless, now that years have passed and so much has happened, cryptocurrency as a class has unfortunately degenerated into a speculative, highly volatile asset – and BTC is no exception. It’s now fashionable to point out how few practical applications cryptocurrencies have found in the real financial sector of the economy. Bitcoin never became what it was intended to be according to its white paper; at the same time, it has acquired features of something it definitely wasn’t designed to become. Today, cryptocurrencies are surrounded by hype, by endless pumps and dumps; they are a way to make a quick buck out of nothing, not a technology bound to disrupt global finance. The recent emergence of crypto CFDs has demonstrated how far derivatization of the crypto industry has gone.

Somehow in the process of this race, a potential bubble has appeared. The two conflicting roles played by cryptocurrencies – as a revolutionary technology and as just another derivative – have become so intertwined in the minds of the audience that diagnosing the actual issue is now tricky. In our post-truth era, each side sees cryptocurrency as only one of these two things.

So what next?

If we accept the original point of few – Bitcoin as digital gold, as a revolution in finance – then the cryptocurrency has to be adopted by a majority in the society. The famous Metcalf law can serve as a criterion here. However, right now we are balancing in a point of uncertainty: expectations are fragmented. There are some true believers (hodlers), there are lots of speculators, there are those who perfect and promote the technology out of pure enthusiasm, and then there is a vast ocean of people who have never, ever used bitcoin.

The bad news is that we are now seriously stuck in the speculative stage, which can kill Bitcoin as a technology. If the BTC bubble were to deflate significantly (causing a chain reaction of deflation for the rest of altcoins), the situation would improve: only tech people (who are doing the real work) and pragmatists would be left in the game, casting the speculating hordes out. This is the issue: expensive and growing Bitcoin has attracted multitudes of people whose only desire is to get rich quick.

The good news is there is still some potential for the Bitcoin to take a healthier course. For instance, its price has already fallen a lot (now it’s roughly 60% of the historical record), which helped dampen the quick buck euphoria; new regulations have improved its legal standing, and the gradual unfolding and growth of Lightning network nodes will soon solve the Bitcoin scaling problem.

Of course, nobody today would want to use the “old” Bitcoin – the way it was 5 years ago. Indeed, who would now use the first edition of the iPhone? The new Bitcoin is among the top 5 most active projects on GitHub. Thanks to its new features and related projects like rootstock, atomic swaps, LN, etc., it turned into a locomotive of the crypto industry – at least if its record price and market influence are any indications. All this instills hope for the future of Bitcoin.

So what are we left with?

The key conclusion: for McAfee’s scenario of the Bitcoin price to become reality, the leading cryptocurrency must be reimagined. The public has to stop seeing it as a speculative asset and begin to perceive it as a foundational technology of a new age. As long as Bitcoin is implemented ever more and becomes more popular, its price will start growing again. However, it will be different, higher-quality growth based on real demand and a growing number of transactions.

To summarize: the final battle – and a possible triumph of crypto – is still ahead of us. In the next few years, the fate of Bitcoin will be decided in our own minds.

6
SHARES
FacebookTwitterLinkedinRedditE-MailTelegram

Related News

Crypto platform NetCents to offer users access to DeFi protocols thru Vesto
Networks & Protocols

Crypto platform NetCents to offer users access to DeFi protocols thru Vesto

02/27/2021
SmartKey to integrate with GeoDB to build the blockchain-based data ecosystem
Networks & Protocols

SmartKey to integrate with GeoDB to develop blockchain-based data ecosystem

02/26/2021
This was avoidable – The lost Bitcoin fortunes
Bitcoin

This was avoidable – The lost Bitcoin fortunes

02/26/2021
Bitcoin exchange Xcoins receives In-Principle Approval for Malta's VFA license
Crypto Exchanges

Bitcoin exchange Xcoins receives In-Principle Approval for Malta’s VFA license

02/26/2021
Token-based commodities DEX Mettalex launches on Binance Smart Chain and Ethereum
Crypto Exchanges

Token-based commodities DEX Mettalex launches on Binance Smart Chain and Ethereum

02/26/2021
Load More
Leave Comment

Where to Exchange

Bit2MeLeading Spanish Bitcoin ExchangeVisit
BL3P
European Bitcoin ExchangeVisit
ChangellyExchange & Buy 150+ CryptocurrenciesVisit
itBitAmerica's First Regulated Bitcoin ExchangeVisit
  • Trending
  • Latest
Glow programming language brings smart contract simplicity to Cardano

Glow programming language brings smart contract simplicity to Cardano

02/26/2021
This was avoidable – The lost Bitcoin fortunes

This was avoidable – The lost Bitcoin fortunes

02/26/2021
ZelaaPayAE deploys Pundi X's merchant crypto payment solutions for UAE

ZelaaPayAE deploys Pundi X’s merchant crypto payment solutions for UAE

02/24/2021
Anchorage raises $80M Series C, led by GIC, Singapore's sovereign wealth fund

Anchorage raises $80M Series C, led by GIC, Singapore’s sovereign wealth fund

02/25/2021
Tendermint invests in Tgrade to bolster Cosmos' growing DeFi ecosystem

Tendermint invests in Tgrade to bolster Cosmos’ growing DeFi ecosystem

02/24/2021
Crypto platform NetCents to offer users access to DeFi protocols thru Vesto

Crypto platform NetCents to offer users access to DeFi protocols thru Vesto

02/27/2021
SmartKey to integrate with GeoDB to build the blockchain-based data ecosystem

SmartKey to integrate with GeoDB to develop blockchain-based data ecosystem

02/26/2021
This was avoidable – The lost Bitcoin fortunes

This was avoidable – The lost Bitcoin fortunes

02/26/2021
Bitcoin exchange Xcoins receives In-Principle Approval for Malta's VFA license

Bitcoin exchange Xcoins receives In-Principle Approval for Malta’s VFA license

02/26/2021
Token-based commodities DEX Mettalex launches on Binance Smart Chain and Ethereum

Token-based commodities DEX Mettalex launches on Binance Smart Chain and Ethereum

02/26/2021
  • Home
  • Directory
  • Data
  • About
  • Contact
SUBSCRIBE

© 2016 - 2021 CryptoNinjas Disclosures | Privacy Policy

  • Home
  • Crypto Links
  • Market Data
  • Blockchain Tech
  • Exchanges
  • Capital Raising
  • Vendor Technology
  • Token Offerings/Listings
  • Payments
  • Wallets
  • Bitcoin ATM Map
  • Conferences & Events
  • About
  • Contact

© 2016 - 2021 CryptoNinjas Disclosures | Privacy Policy


Go to mobile version