The Case Against Blockchain: From A Crypto Believer
“Don’t blame the player, blame the game instead”
11 Years and counting, it is time for the truth
Like this quote, I used to think that it was usually the system and not the individual that led to catastrophes. Take the 2008 financial recession for example. A flawed financial system led to thousands of jobs lost.
What can we blame except for the system for this global problem?
This is one of the main reasons Bitcoin excited many of its early adopters. Finally, we can change the system for good and give the power of financial control to the people.
However, after 11 years since its creation, Bitcoin has yet to replace the current financial system. One can argue that its an issue with scalability, regulators or that more time is needed. These are all legitimate points and I do believe once resolved Bitcoin can take a significant step further.
What if there is a fundamental issue that we are not looking at and mass adoption will truly happen if this is resolved?
Take note that this is not an attack on Bitcoin (it is one of the greatest inventions in my opinion) but rather how human nature currently prevents Bitcoin from fulfilling its full potential.
How Bitcoin Has Changed The World
When we think of Bitcoin, we think about the Bitcoin Millionaires we made their fortune by buying Bitcoin in its infancy. However, it has done much more than that.
Before Bitcoin, there was no viable alternative to fiat currencies. Citizens of countries such as Venezuela had no way to escape from the hyperinflation of their currency.
While not exactly stable, Bitcoin became an alternative currency these citizens could hold instead of their fiat currency that was losing its worth with each passing day.
Also, Bitcoin introduced Blockchain technology to the world, which introduced new possibilities to many industries in the financial sector, supply chain and even the gaming industry to name a few.
No longer do you have to wait for days to see your remittance successfully cleared and pay a hefty fee for it. Settlement by Blockchain technology will transfer your money in a fraction of the time with the little cost incurred.
These and more are the benefits provided by Bitcoin, with more promising to be realized as the technology becomes more developed.
So what is stopping Bitcoin from realizing its full potential?
The Other Side Of Blockchain
Speculation and Scams
CEO of Crypto Exchanges running away with user funds. Exchange hacks. Crypto scams such as PlusToken
. These and more are what give Bitcoin and Cryptocurrency, in general, a bad name.
For cryptocurrencies to become a legitimate asset class alternative cash used by the masses it needs to shed its image as a speculative asset.
Unfortunately, the greedy aspect of human nature will mean there will always be victims taken in by “Get rich quick” schemes which give scammers endless opportunities to use Bitcoin as a way to dupe investors.
A Solution Looking For A Problem?
For every product and solution to be successful in the market requires three things
- It needs to solve a problem
- Enough people need to want this solution
- People are willing to pay
As a new asset class, it is difficult to pigeon-hole Bitcoin into an existing asset class, with the closest being gold in my opinion.
There are many different narratives surrounding Blockchain regarding what it solves. Some say Bitcoin gives us back financial control from the governments, others see it as a more efficient way for remittance and another part of the community sees Bitcoin as “Digital Gold”
Either way, this has not stopped serious traders from using trading bots
when it comes to trading on Bitcoin exchanges, furthering the narrative that Bitcoin is a currency or commodity to be traded.
Until we have settled on the story angle for Bitcoin, not many will be convinced it solves a problem(s) and fewer will be willing to allocate part of their money into Bitcoin as an investment. Which brings me to my next point.
What Can Be Done
In conclusion, there remains A TON of work to be done before Bitcoin becomes legitimate not only in the eyes of the regulators but in the eyes of normal users.
One strong driver of mass adoption is for people in the industry to make the effort in educating the public. Holding Crypto conferences where only existing members of the industry attend is no longer viable for the space to grow.
Blockchain companies should look towards acquiring users who do not know much about Crypto but have an interest in financial investments.
While the cost per acquisition will be higher due to the extra effort required for education, new users are more likely to stick with your product unless they can find alternatives right away.
It is too good to be true, it probably is. The sooner users realize that the days of getting rich fast are well over the faster scams can be flushed out.
While this is probably a pipe dream, influencers who only accept paid promotions for promising projects will be another step to a healthier Crypto industry.
The road to mass adoption may be far, but I still believe there are massive rewards for those who stay and continue pushing for others to see that Blockchain is more than a technological phenomenon and is here to stay.
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