The new age of Blockchain after speculation
The rise of cryptocurrencies has undeniably led to a new era in investing and trading.
At the beginning, Bitcoin was perceived just as a weird mean of exchange for a few tech savvy users; it then became more popular, unfortunately often with a negative significance, as frequently and erroneously associated with illegal transactions. It took a few years before people became more familiar with the broader concept of the amazing and game-changing technology supporting this cryptocurrency: Blockchain.
Blockchain is going to transform many industries and processes, thanks to its decentralization and immutability characteristics: banking and finance, supply chain, data ownership and sharing, human resources, properties registration, patents and creativity-rights protection, peer-to-peer transactions…and many more. Apart from finance, successful uses cases are already being applied to several fields like food, health, energy, fashion, transports, contents and media, gaming, travelling, and even dating!
However, like every technological innovation, Blockchain has also inspired less ethic usage forms or simply an over exploitation of this technology, with no justified reason.
The number of cryptocurrencies available over the internet at the beginning of 2018 was over 1400, and it did not stop growing.
The extreme volatility of cryptocurrencies, associated with an important capital provision, especially in the last six months of 2017, has driven the attention of traditional investors and traders toward this new exciting market.
Together with Bitcoin, new cryptocurrencies like Ethereum, Ripple, Litecoin, NEO, backed by solid technological solutions, have populated the crypto market scenario. Most of the top 10 cryptocurrencies, ranking in terms of market cap, were just created in the last three years.
This amazing progress, together with the appeal of an unregulated market, has generated a growing interest, with all of its pros and cons. Hackers, ICOs frauds, Ponzi schemes, scam tokens, are just a few of the traps that have poisoned the system.
An urge for regulations was nearly predictable, and most of the political organizations have started looking deeply into cryptocurrencies and their main legal and taxes implications.
Since January, we have assisted to a continuous spreading of FUD on new regulations, driving absurd bearish trends, in a market that used to be mainly bullish until December, when Bitcoin nearly reached the value of 20,000 USD. Despite this scaring scenario, Blockchain technology is moving fast in order to become mainstream, by solving technical issues related to faster and cheaper transactions, security, and environmentally sustainable practices of mining (Lighting Network, Casper Protocol, etc.).
The point is, while these ongoing regulations might interfere with the creation of new tokens, and/or having a negative impact on investments in cryptocurrencies, it seems important to create a legit environment.
Is this a negative situation?
For those working with Blockchain and being committed to the real potential of this technology, this phase is not surprising nor concerning. Banking industry itself is finally acknowledging its limits and is embracing Blockchain, instead of fighting it as it happened at the beginning.
Several cryptocurrencies are becoming more popular as a mean of payment. Totally blocking a decentralized system would be unfeasible for the governments, as it would result in a huge amount of resources. Some governments are even thinking about Blockchain for administration and taxes payment.
It is then clear that Blockchain, as a technology, is here to stay and disrupt many industries.
What could this mean for cryptocurrencies? A more regulated system could lead to a less wild environment, maybe less interesting for adrenaline-addicted traders, but surely more beneficial to long term business and innovation for investors, with maybe less tokens generation, but more solid solutions.
In this perspective, where some financial gurus predict the disappearance of Bitcoin, while some others forecast it will be worth 40,000 USD by the end of this year, we may be surprised by new cryptocurrencies, fast reaching the top 10 position in a few months.
There will be surely interesting changes in the market configuration, but this means that Blockchain, as a technology, will be more consolidated.
Join the Blockchain revolution with Skyllz!
P.S: for more info, join our community!