How often do you come across an article that says “Bitcoin is a scam”, “Bitcoin is a bubble” or even “cryptos will fade away when the bubble bursts”?
I’m not denying in anyway that Bitcoin prices may be a bubble, but regardless of whether it’s valued at $1 per Bitcoin or $10,000 per Bitcoin, I believe cryptos are here to stay.
Bitcoin and cryptocurrencies in general have gained a lot of attention these days due to the rocketing price of Bitcoin. Bitcoin wasn’t so prevalent in social media back then but these days I even see some of my friends posting about it. This means it has gained a lot of popularity and many new investors are going in as well.
Coinbase even reported a signup of 100,000 new accounts the other day! Pretty sure I contributed to some of those referrals.
Here are some reasons why I think cryptocurrencies are here to stay.
1. Most cryptos are based on the blockchain technology
Why I say most is because IOTA is based on their own Tangle technology, not blockchain. That said, they are quite similar as both Tangle and blockchain tech uses a distributed ledger. I’m not sure if there are other coins not based on blockchain tech, but I’m sure IOTA is not.
To be honest, I think what gives cryptos value is the technology behind the coin, and not the coin itself, amongst other factors like the team and so on.
Blockchain technology has introduced and is capable of introducing more efficient and transparent systems that the world needs. Transparency is probably the main reason for its value. This doesn’t apply to anonymity with coins like Monero of course.
As all of the transactions are on the public ledger, anyone can check for certain where the money went. Perhaps the only thing most people don’t know is who actually owns the wallet addresses, which is why some accuse Bitcoin to be a coin for criminals and money laundering. If cryptos are really implemented worldwide in the future, then perhaps each address can be tied to a user via some sort of identification and this would solve the transparency problem.
These days, tokens are created for different purposes. We don’t need 1,000 different tokens just to do electronic transactions. We can already do that with banking and what not. Steem for e.g. has the purpose of incentivising blogging/social media. Ark aims to connect all blockchains together and Siacoin aims to provide decentralized storage to compete with the likes of Amazon and Microsoft. BAT aims to change the way adverts are displayed on the internet. Each token has their own purpose and their selling point. In a way it feels like we’re holding stocks instead of currency.
Even if the “bubble” bursts and the value of coins drop tremendously, it doesn’t mean the coins have zero value. The technology behind it gives it value. The problem with crypto right now is that everyone’s entering just to make quick bucks. That’s not how it should be at all.
2. Some cryptocurrencies have high speed transactions with zero fees
At the moment if we rely on banks or some third parties, we’ll have to incur fees for every transaction. This means losses whenever we buy or sell anything online, or even make a friendly transfer of money to your family members.
What if we could do all of that in just a matter of seconds with zero fees? Steem for instance has a 3-second transaction speed and zero fees. I do have to admit that I’m a little biased since I’m an active member of the Steem blockchain. That said, it doesn’t mean what I’m saying is false. Cryptocurrencies are still in the infancy stage. Bitcoin has been around for around 9 years and it’s still considered relatively new to the internet. Most cryptos right now are not even 3 years old and there’s so much to explore.
Even Bill Gates believes in the power of cryptos, but he is not referring to Bitcoin. Perhaps the partnership of Microsoft with IOTA explains where his intention lies. I recommended IOTA in my article on which crypto to buy and it was only $0.5 at the time. Now it’s $4.5 thanks to Microsoft’s involvement with IOTA.
Back to the point. If we can bypass financial institutions and at the same time have instant transactions with zero fees, then we may be looking at something huge.
3. It puts more power with the people
Some people equate crypto with rebellion due to the fact that crypto is decentralized and not regulated by the government. It’s not surprising as well.
One great factor of cryptocurrencies is that it has enriched many regular individuals, not just the upper class and governments. It’s a double-edged sword. I dislike the fact that cryptos are seen as money-making machines when it should be appreciated for its technology. It may be like the dot-com bubble that burst in the past. That said, it will rise again like how dot-coms are still popular today.
With tokens like Steem, it actually puts crypto to good use. It rewards people for time and effort. When did you ever get paid by Facebook for writing and posting quality content on Facebook? Or sharing your awesome photos? Social media giants like Facebook become richer each day and Steem is here to change it. It incentivizes quality content and make regular individuals like you and me slightly better off.
What’s wrong with that?
In a nutshell
Cryptocurrencies or rather blockchain technology has been likened to Internet 2.0. There’s so much to look forward to in this crypto space and it’s no wonder everyone’s searching about it these days. Just look at Coinmarketcap! They’re getting more visitors than Wall Street Journal.
Cryptocurrencies are here to stay. However, I also believe that most cryptos will fail, because many are scams and also probably because not all 1,500 cryptos (and counting) will survive in the future. Always do your own research and invest wisely. Do not invest more than you can afford to lose.
Disclaimer: This article is never intended to be taken as investment advice of any sort.
Thanks for reading.