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Since it was created about a decade ago, bitcoin and the resulting cryptocurrency market have had to face a steady stream of prophets of misfortune who declare the dead currency or are destined for obsolescence. Even so, ten years later, a single bitcoin is worth four digits, and seems to have found some stability in tandem with its growing maturity. The same can not be said for the sector which now includes thousands of coins and tokens, each of which presents varying degrees of success.
Moreover, despite all their promises, cryptocurrencies still fail to penetrate the mainstream. There are still very few merchants who accept cryptographic payments and most of the financial services continue to be settled in legal currencies. Critics say the crypt may have been a flash in the pan. For the supporters, however, the signs are clear that even with the current killing of the crypts, the sector will emerge stronger.
The real question is, which group is right?
Crypto is dead, or dying – The part of the skeptics
As of August 2018, the number of cryptocurrencies on the market is found somewhere above 2,000. This should be a clear sign of the industry boom, but the numbers are deceptive. A report published in July this year found that more than 800 of these are essentially dead, worth less than one cent. This follows the news of scams and rampant frauds in the initial market for the supply of coins (ICO) and other signs of difficulty for the sector.
The problem starts with the bitcoin itself, since the cryptocurrency encountered great difficulties in 2018. After reaching stratospheric levels with a valuation of almost $ 20,000 in December 2017, bitcoin prices he has come to slam in January, and they struggled to reach the heights of the last few years. Furthermore, the value of cryptographic transactions carried out, which was astronomical in the first quarter of the year, it collapsed by almost 75% during the second quarter. The number of transactions fell from around 360,000 at the end of 2017 to around 230,000 by September this year.
The lack of acceptance, especially in the investment arena, can be partly attributed to the denial by the US SEC of more than a dozen questions to list the funds traded on the bitcoin exchange (ETF). More importantly, the cryptocurrencies of freedom of movement and freedom enjoyed as unregulated goods are rapidly coming to an end. 2018 has seen a drastic resumption of regulatory efforts, with countries around the world taking a more serious and deliberate stance. This, say many skeptics, it could still be another nail in the coffinstifling growth and limiting the true potential of the sector as a disintermediate force.
Crypto is not dead, it is flourishing – The side of the supporters
On the other hand, these are not necessarily new critiques to the cryptographic sector. While it is true that bitcoin prices – and by extension most of the other cryptocurrencies – crashed at the beginning of 2018, the volatility that once defined the market it seems to fade gradually. While this is bad news for speculators, it's a good news for institutional investors, which many believe are the key to unlocking the future of crypto.
More importantly, cryptocurrencies and blockchain in general are starting to gather a more widespread adoption. While the merchants remain wary of digital currencies, banks, large technology companies and other companies they have already started to hire their.
Such as Watch VR The CEO and founder Mary Spio noted that "the cryptocurrency is not nearly dead, it is only scratching the tip of the iceberg towards mainstream adoption, when companies offer real-life value and integration of cryptocurrencies, we will begin to see the next wave and the rebirth of cryptocurrency, to create a more natural demand and less speculation and hype. " the cryptocurrencies that vanished they were those based on hype and little else.
"Although 2018 has witnessed a downturn in the market after the 2017 upward trend, we are convinced that the future is recovering, driven by the institutional capital that results in encrypted assets.In the interior of the cryptographic resources, the distribution of wealth will shift from utility tokens to Bitcoin and probable security tokens, "said Agada Nameri of iCapital, a subsidiary of iAngels dedicated to blockchain opportunities.
It seems that while many have knocked down the idea that bitcoin and the encrypted market are mainstream, the industry is determined to show that they are wrong. While cryptocurrencies may not yet be a standard for payments and exchanges of value, the technology that underlies them – blockchain – is rapidly becoming a standard in a variety of industries and sectors. Perhaps more crucial, the services provided by these tools are all based on cryptocurrencies and tokens. As companies continue to correct weaknesses and uncover new solutions without friction to old problems with the blockchain, the crypto will further flex the muscles.
Long Live Crypto
Despite its many skeptics and prophets, the cryptography market has continued to connect and prosper. Although prices have fluctuated wildly – and in some cases enormously bearish – the sector is finally starting to stabilize and seems to be lagging behind.
As more companies discover the uses for cryptography and blockchain, and more users accept them as a way to simplify their lives, they will remain a central point of conversation in technology. More interesting, as it shows its value in a variety of situations better, from banks to the purchase of coffee, the technology will be further strengthened. Coins can come and go, and many cryptocurrencies may actually fail, but the industry will continue to progress unabated.
