If you roll the clock back to the beginning of 2017, you probably hadn’t heard of many cryptocurrencies. Sure, you may have known about Bitcoin, perhaps even Litecoin or Ethereum. But cryptos had yet to hit the mainstream media and gain the full attention of the public.
All that changed in September, 2017.
For a short period we saw huge, inflated growth for essentially every single cryptocurrency. The market was booming!
It was, sadly, too good to last.
Since December, 2017, we have seen a persisting decline in the value of cryptos.
It has been quick and it has been volatile. It hasn’t even been a year since Bitcoin almost hit $20,000.
A lot of people have lost interest and faith in cryptocurrencies, but we don’t think that should be the case.
Cryptos have a lot more to offer and are here to stay. Let’s take a look at why!
The true gem, the true value of cryptocurrency is not the currency itself.
It is the technology behind it.
Blockchain is a digital structure that is the reason for every single cryptocurrency’s surge in popularity. In the 90’s, there were papers written on the idea of a secure, digital currency. But no one had managed to successfully create one.
That changed with the creation of Bitcoin and blockchain.
This technology is the main reason why cryptocurrencies are here to stay. Sure, some cryptos can and will fail – Bitcoin could fail in the future!
For all we know, Bitcoin may be the AOL of the crypto world and the Google equivalent is yet to appear.
But cryptocurrencies as a whole are here to stay because the technology behind them is just too useful and valuable.
Change takes time because change is uncomfortable and difficult. As a society, we have always resisted changes to our monetary system. It took decades to adopt credit cards over paper money.
It takes time for us to build trust with something new and it is no different in the case of cryptos.
Usability and versatility will help to reduce these pains of change. Both of these things provide immense value that we can’t ignore.
Blockchain is a new platform that enables creation and innovation whilst increasing digital security. It is so highly valued because of the new possibilities that weren’t even an option before its existence.
There are so many interesting and beneficial applications of the technology.
Check out Medicalchain. This is a company that is pushing to use blockchain to securely store patient records.
The applications don’t stop there though. You can provide doctors access to your records and streamline medical care. It opens up new opportunities for research on an international scale.
The potential impact it can have on the betterment of people’s lives is too good to ignore!
This is a common sentiment when you look through the various projects that are using blockchain.
And all this, in only 9 years.
Imagine what we could see in the next 9 years!
Blockchain is the biggest breakthrough in our digital society in decades, make no mistake.
Companies know the value of blockchain. New discoveries are made everyday. Innovation is Blockchain’s best friend and we have just begun to truly innovate with the technology.
The uses we have mentioned so far have all come about because of the interest in blockchain and cryptos.
Corporate and government interest in cryptocurrency has only increased since its creation. Doubts and concerns have arisen in the last year since the decline in crypto prices, but the direction of business involvement is continuing upwards – strongly.
It is normal for technology to falter! Take a look at the negative impacts of social media in recent years. But these setbacks are vital for progress.
How can we improve upon a technology if we don’t recognize and tackle the negative aspects of it?
The interest that multi-million dollar companies have in blockchain and cryptos is hugely impactful. However, it’s not just these entities that are driving the interest in cryptos.
You can see the interest across the entire social spectrum.
Cryptocurrency has been adopted by smaller economic nations and peoples in dire situations. It provides an alternative method of storing wealth. This is useful for citizens that cannot rely on or trust their government.
In November 2017, Zimbabweans began to adopt Bitcoin after a military take over sparked worries over hyperinflation. Bitcoin provided a solution for many people who were worried their entire net worth would be lost.
High rates of inflation are common in developing nations.
Cryptos provide protection and the possibility of obtaining wealth. This is empowering for poor communities that would otherwise remain poor because of a worthless currency – as was the case in Venezuela in 2017.
Cryptos provide another financial choice for those who would otherwise have none.
Western governments are discussing cryptos and their integration into today’s societal, political, and economical frameworks. Regulation and organization is a difficult discussion that is on-going.
The approach of companies, banks, and governments is not of eradication. It is a question of how this new idea, this new structure of currency, can fit into our society. It has ruffled many feathers but that is what big change does – it upsets the established norms.
Investment in blockchain is reaching incredible heights. Dedicated funds are being created to invest and trade solely in cryptocurrencies.
We live in a capitalist society and money talks in our world.
Cryptocurrency is a new form of money that is creating wealth for many people. That’s something that will fit right in with our current worldview (whether that view is good is another debate!).
There are hurdles to overcome and problems to solve. Regulations need to be created to help implement cryptocurrency in a safe way.
These things take time and in a digital age a lot can happen in a short space of time.
The long-term outlook for cryptocurrency looks incredibly good. There may not be a Bitcoin or a Litecoin in 20 or 30 years. But this is not the dawn of Bitcoin, Litecoin, or any specific coin.
It is the arrival of cryptocurrency, blockchain, and an ever more digital society.
The last reason as to why we think cryptos are here to stay is time.
The last year has seen some incredible highs and incredible lows for cryptocurrency. It has not been a smooth ride and this has only been made worse with the general public hopping on.
When Bitcoin reached its all time high of roughly $19,900 the world was captivated.
Less than 9 months later and that sentiment has turned on its head. The media whipped up a storm around the crashes of the crypto market. We have seen a whole range of ‘experts’ giving their predictions over the future of cryptos.
But here we are on the other side. Not even a year since the high of Bitcoin and yet some have claimed that cryptos are on their way out the door.
To that, we say “calm down”. A year ago from this article, Bitcoin’s price was at $5,000 and suffered a drop in price to $3,000.
Large price corrections have occurred many times in the past and they will continue to happen in the future.
A crucial part of being involved in a market is staying calm when around you there is panic. In the digital world, change and sentiment can flip in a matter of hours or days.
The fact that cryptocurrencies are so closely tied to the internet and digital world means that it is incredibly easy to lose perspective of the long term.
Cryptocurrencies have only broken into the general public knowledge in the last year.
The technology itself has existed for only 9 years. This is an extremely young and dynamic market that has just begun to explore its boundaries.
We have so much more time ahead to explore and innovate with cryptocurrencies and blockchain. To say they are going to fail is jumping the gun.
Imagine another 9 years from now, only this time you have billions or trillions more dollars behind innovation. The potential for this technology becomes enormous when seen in the correct context of time.
We don’t know the true value we as a society place on cryptocurrencies. That is really why we are uncertain of their future. We don’t know their place in our global and national systems. Vital questions need to be asked and answered in the years to come.
But we are confident that the technology, the interest, and the time we put into these things will undoubtedly result in cryptocurrencies becoming a part of our global world.
Japan has already taken an approach to regulate the crypto world as opposed to banning it outright. It is creating a culture around cryptos that could see it becoming the international hub for the crypto market.
There are extremely promising signs that cryptos will grow to become a part of our everyday lives. We need to be sure that as a community we continue to champion the life-enhancing attributes that cryptos and blockchain have to offer.