The sense of urgency is everywhere you look .. Bitcoin is dying and it's time to find a new job The warnings are hard. The price of Bitcoin has lost 70% from its peak of $ 20,000 last year, the La Securities and Exchange Commission has rejected every bitcoin ETF seen so far and Goldman Sachs has delayed its widespread launch of bitcoin trading.
The former senior economist Bill Clinton, Nouriel Roubini, seems not to stop talking about "useless" "Cryptocurrency, and even the controversial Wolf of Wall Street Jordan Belfort, who pleaded guilty to fraud concerning the manipulation of the stock market, said that the bitcoin is destined for scrapyard.
Like bitcoins and their even cryptocurrencies including ethereum, XRP and others have exploded into the public aware ss in the last year, the warnings must really look terrible. But this is not new. Bitcoin could eventually fail, blockchain could turn out to be a bunch of smoke and mirrors, but they are not yet, and what we are experiencing right now is just much more than what has already happened.
The first recorded the affirmation of the disappearance of bitcoin occurred in 2010, on a little known blog that was published on a register of "bitcoin obituaries " collected by 99Bitcoins, a bitcoin information site . While I consider myself one of the first waves of bitcoin writers, having written my first article on the topic in 2011, this initial statement of bitcoin's death came when the cryptocurrency was valued at only $ 0.23. Now it is worth almost $ 7,000.
The year I wrote my first bitcoin article, the nascent cryptocurrency was declared dead another six times as its price ranged between $ 3.12 and $ 19.73. The site has traced a total of 309 bitcoin deaths, the most recent of which was a 24-page take-down of the Economist which ventured that not only was bitcoin useless but blockchain was probably coming soon
At that time, I saw Bitcoin fight to survive with the first forks, or copies, of the open source code that tried to create value from the original code written by Satoshi Nakamoto. At that time, the widespread belief was that in the end there would be only a cryptocurrency, a Swiss global finance knife that would evolve to include the best of all cryptocurrencies until the old-fashioned fiat currency issued by central banks died as a cow's shell tucked around the neck of a member of the Papua New Guinea tribe.
Then, in 2014, ethereum began its ascent of popularity, and many felt that the cryptocurrency, which has a coding language that could be used to write decentralized applications, a bell to death for bitcoins. Others saw the end of the previously unregulated bitcoin when IRS said that owners would have to pay taxes on earnings. When Mount Gox, the largest bitcoin exchange in the world, was forced to close with a massive $ 500 million change, many skeptics declared the cryptocurrency to be dead. When the Silk Road market for the purchase of illicit goods was closed by the FBI, bitcoin experienced what many believed was a catastrophic price drop, falling to $ 418, and many declared use of drugs for the purchase of cases of cryptocurrency due to loss.
So serious is the state of cryptocurrency that a new website dedicated to "DeadCoins" lists more than 900 cryptocurrencies that are no longer active, are scams or have never been anything but a joke. But from that first claim of bitcoin's death, the bitcoin grew by 2.8 million to $ 6.477, with a total value of $ 111 billion. Ethereum is valued at $ 23 billion and XRP is $ 11 billion, with a total cryptocurrency capitalization of $ 204 billion.
What is perhaps the biggest difference in this most recent cry of bitcoin's death is the negative focus on the blockchain itself. If bitcoin has led users to question the role of banks in global finance, any other intermediary – from central securities custodians to land ownership registers – could also be reimagined. But this last skeptic of skeptics has also questioned these and other possible cases of use.
Supporting the loan to the concerns that the blockchain is dying is a Deloitte report from last year that found that over 90% of the nearly 27,000 blockchain projects on the Github code repository were no longer active. Yet that number is only slightly higher than the failure rate of any startup, according to a Harvard Business School report of 2012, & nbsp; and on par with the conventional wisdom that says 90% of all startups fail.
So, what's going on here? Why is an entire industry declared dead when its startups are predictably bankrupt? Why do not we declare dead or health care or technology dead because a high percentage of their startups fail? It is hard to say with certainty. But an obvious possibility is that the vested interests of the blockchain to succeed or fail are strong.
Traditional economists who have spent their careers studying the status quo are likely to see the work of their life thrown into the proverbial dust container in a decentralized world. Any financial institution or broker that makes money runs the risk of seeing profits fall if the counterparts can connect directly using open source technology and have spent money on defensive exploration as a result.
On the other hand, companies have continued to hire thousands of employees to build and sell new decentralized systems, blockchain developers have invested months and years in the learning of investor technology and droves to which has been prevented from investing in startups through regulations and other obstacles have thrown their hard-earned money into the possibility of participating in a new paradigm.
If one of these groups is denied, they too have a lot to lose. Another possibility, however, is that we are in a period of time that is completely different from the one that each of us realizes.
My friends who write computer code talk about being able to recognize if a person has learned to code when they were children or an adult based on how elegant the solution is. The younger the person who has learned to write, the more imaginative and simple the solution is. In blockchain, all currently in the world of work have learned to codify themselves as adults. They grew up in a centralized world and started to study computer languages to decentralize it only after their worldview had begun to solidify. True innovation, I believe, will not come until young people who have grown up with decentralized possibilities and have learned to write intelligent bargaining code while their minds are still forming begin to implement their ideas in the workforce.
In the meantime, so long as some people choose to rely on cryptography and electricity that feeds the blockchain instead of intermediaries between them, innovation among bitcoin enthusiasts and their descendants will remain alive and well. .