‘Cryptowinter’ OR ‘10-Year Challenge’
A blockchain startup’s take on current social phenomenons and how to take the cool.
The last month of 2018 Cryptowinter started to become a thing. The term was used to describe the bear market in Bitcoin and broader cryptocurrency space. And while it might become Nuclear winter or A Dream of Spring in other space and time another experience called the 10 year challenge is happening. While the first month of 2019 one algorithm is learning face recognition through time, another one celebrated its 10th anniversary.
In the 10 year challenge Bitcoin did pretty damn good and there is no winter coming.
Bitcoin is now working for a decade without bigger interruptions and has thus fulfilled its purpose. Not everything is perfect however is an attempt to see the bigger picture. We think there is no winter coming, rather it is a learning curve that is happening. Looking back, we would serve injustice if we based our forecasts solely on the price without more insight into its culture (yes, the price is important but not the only determining factor).
Past week Coindesk published an article on how bad the cryptowinter has been for some. We can understand that ICO (funded) startups are struggling from last year’s retraction of price, and while there are many they are only one part of the ecosystem. The way they raised funds made them strongly linked to cryptocurrency price fluctuations but there are other types of blockchain companies which are perhaps more mundane.
Non-ICO blockchain companies do not own their survival exclusively to the price of cryptocurrencies. Ups and downs of price in this case are being put aside and steady development is put upfront. We can note that at the end of 2017 blockchain technologies experienced such an influx that players in the industry (even major exchanges) were working just so things were running, while today we can observe it is a great time for building, and it looks like bigger businesses (e.g. Kraken) are taking advantage of it. If cryptowinter means there is time to improve we are cool with it. From our blockchain startup perspective this period is ideal for polishing our services, naturally under the cost of lower volume of sales, less interest and fewer new connections, all under the axiom that cycles repeat and a hype cycle is to come. A recent MIT Tech Review article forecasts that blockhchain will become boring in 2019, or in our CEO’s words: “Hofstadter’s law is being applied.”
Everyday for fintech is good, even if it sounds counteractive in the case of a novel technology.
The big fuss around the 10 year challenge and the whole setback of cryptowinter offers a great opportunity to make good products excellent and bring the new technologies closer to the masses.
It looks like Spring will come soon. After all, after every winter there comes spring; 10 times in a decade, even in Game of Thrones, so there should be no fear of cool.