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Since 2009, the bitcoin has recorded more than a few ups and downs. The greatest greatest of all time arrived in December 2017, when bitcoins hit $ 19,783 between big fanfare and media hype, but since then the market has seen a series of corrections with the price of BTC that currently hovers around $ 3,500. The bear market we now face has been dubbed "winter crypts" by more than a few, but opponents who called it the "bitcoin death" would do well to remember the story, now BTC has been declared dead over 326 times and counting.
Note: this is a guest post by Alex Momot, CEO of Remme.
Read more about Remme Here.
Separation of Cryptocurrency and Blockchain
When we think of long-term investment, it is important to separate the cryptocurrency from the blockchain technology that underlies it. Instead, we must examine the intrinsic value of the project. The value of a cryptocurrency as a store of value is very different from the blockchain projects that should bring a specific utility into space. It can be argued that pure cryptocurrency is more prone to speculation, while blockchain and decentralization are more based on the value of the dApp it supports.
In the past, a popular method of evaluating cryptocurrency has been the volume of trade, yet this is a very outdated and unreliable indicator. A few years ago it was obvious that the maximum liquidity was on exchange no. 1 and that liquidity decreased as you descended towards smaller exchanges. Today the picture is much less clear thanks to the bots that offer the volumes, often a certain number of times. Consequently, judging the interest in any token from the volume of exchanges is a stupid commission. It can also happen that blockchain projects negotiated on these markets are not able to adequately assess the interests thanks to the bots that trade the waters.
Advantages of decentralization
For this reason, it is not possible to find the fundamental value of a blockchain by observing its volume of exchanges or similar indicators, but instead in the applications that can be built on it. We have to go back to the basics and create products with added value. At REMME we focus only on this: to develop our open source protocol and dApp on a secondary level to present a new approach to public key infrastructure. Although many IT security specialists remain wary of innovations, they agree that industry requires new tools and solutions. As a result, even conservative industries such as cyber security have been forced to seriously consider the benefits of decentralization. The benefits of using distributed sources of trust will lead to an intuitive increase in security in the space followed by a huge cost reduction.
If the cybersecurity sector must embrace this emerging technology, it will only occur by exploiting blockchains and dApps that have evolved to meet their needs. Smart Blockchain projects are already in the right direction and I believe that 2019 will be the year in which we begin to see the first dApps that get market adoption. In the company, we will begin to see more cases of blockchain use than ever before, and outside of the company we will see greater adoption of blockchain in financial services.
We are just starting
In short, I think the era of decentralization has just begun. This wave of innovation will bring even more cryptocurrencies, as well as helping to increase the price of those that are supported by real products and not just by hype. And the number confirms it. According to the state of Dapps, the monthly development of dApp has increased by 182% since December 2017. Who predicts the winter crypt should remember that the winter is always followed by spring. Crypto is not over – it's just the beginning.
About Alex
With over ten years of IT experience, Alex has been working in the blockchain space since 2013. In 2014 he managed BitX, a start-up that allowed people to pay for telecommunications and other everyday services in bitcoins. Alex has been a member of the board of Bitcoin Foundation Ukraine for the past three years and has also been in Bitcoin mining since 2015. He is currently co-founder and CEO of REMME, a distributed Public Key Infrastructure protocol and PKI-enabled apps for the web modern.
