Jul 15, 2020
What is the value of Cryptocurrencies if Countries are Digitizing their own Currencies?
More and more countries are spending resources in understanding the blockchain industry. Fintech is always a hot thing for governments to invest in and due to the potential in blockchain and crypto, this has blown up in many countries. With people not truly understanding and even more so refusing to learn and have a proper opinion on the topic. <- From a business point of view.
Although every “news” or “article” online might be hyper focused on the up and down fluctuations of each particular crypto-currency, I’ve always taken a “bigger picture” approach towards my own personal crypto investments. I am 100% a believer but only in the right project. The in & out hype game is just not for me. I have and will always look into the potential of long-term return rather than fast-game projects for a couple of reasons.
The Industry Doesn’t stop Changing
It’s strength is in many ways also it’s main weakness.
Although this is often seen as a good thing, I personally see it as one of the biggest things preventing mass-adoption. & without mass-adoption, there is not much a future for crypto. I’ll stand by that fact till I die.
One day the hype is on crypto A, tomorrow it’s on crypto Z. Progress and growth doesn’t happen this way. One day it’s about a crypto forking/halving another day it’s about another security token. It truly never ends.
The essence of these changes are of course positive. The ball is always moving, adapting and better people are hopping onto the bandwagon to build stronger projects.
However the key issue I see here is that overall, these changes will never lead to stability and it’s all because of impatience.
The people that really matter, that will change the game for the industry and who are real businessmen who can see right through all the nonsense you hear from the industry on a daily basis. They simply don’t trust any of the garbage being told & that says a lot.
It is important to note that when people talk about the industry, there is a lack of differentiation between Blockchain & Cryptocurrencies. I feel that it is especially important to talk about them as different subjects as the public tends to merge the two together.
The Industry spends too much time on the wrong things
Twitter & Social Media
It’s all speculation, talk & toxic bullshit.
Everyone is talking too much.
Firstly, about the things that go on behind their own personal “crypto” project. The blockchain aspect of crypto is 100% going to be implemented into all walks of life in the future. But the idea that crypto is what people should be putting money into just based on that blockchain’s project is usually just bullshit.
The current biggest, Bitcoin has one massive weakness. Nobody is spearheading it’s success or failure. There is quite literally no control when it comes to bitcoin itself and yet it dictates how most other coins do on a daily basis.
Events
At the end of the day, it’s all for show.
If you follow any of the major companies you’d know. The crypto events are freaking endless. If you follow any of them you’d also know that these events are the same old nonsense getting told again and again. They use the same formula and they usually bank on the same star names saying the same things over and over again.
Sure. Once in awhile you’ll find a gem or two but 80% of what you get during these events will be the same across every freaking crypto/blockchain event in history. Question is, why are they spending this kind of money when they haven’t reached a point in their business when they can see real returns? <-Aside from the $$$ they personally pocket of course.
Business
Majority of people talking about blockchain and crypto aren’t real business people. They are back-end tech people who just struck gold(to be honest). They are back-end tech people who have gone through extensive PR training after their newfound wealth & popularity.
I honestly haven’t seen many projects being spearheaded by people who have a proper plan moving forward in all areas business. But I’ve seen absolute unknowns rise up countless times just by regurgitating the same crap you find online on a daily basis.
How many have really thought about how the blockchain technology behind their business will create the necessary usage of that crypto currency for the mass-market? Everybody is just thinking about “how good” or “how useful” their business/technology is. Few are truly thinking of the end user.
It’s all about the end user. Be it B2B or B2C, it’s really not about you. It’s about how it’s going to benefit them & 99.99% of companies have simply failed to come close to showing why they deserve 2 seconds of your time.
China is paving the way through WECHAT
I’ve been talking about this ever since WECHAT started to up their game. While everybody was wowing over the speed of the app’s user growth, they have also criticized the app’s inability to gain market share out of China. The West’s fascination with freedom has also blinded them in to realize the potential of China’s controversial methods in controlling their markets often times brushing off their successes.
Through little key moments in Crypto-history, China dealt a massive blow to the industry by “Banning” it in China while it was growing at a disgusting rate. Like most countries, one would attribute it to the government’s inability in taxing transactions. Which although I feel is spot on, open China’s eyes to the bigger picture behind Blockchain & the Digitization of assets. Where people saw limitations, they saw an opportunity.
They proceeded to create a system in China for everybody to use. WECHAT became the norm. It became so easy and seamless you won’t think of using any other method. If you’re paying with cash today, people will look at you like you are mental.
Mid May, at a valuation of over $500 billion, WECHAT has become so strong of a company that if you aren’t using it, you’re just going to be left behind. It’s everything people use in their daily lives all mushed into one platform. It’s what other giants have failed to achieve. Their evolution in such a short period of time is something to learn from.
They have turned their RMB currency into an actual cryptocurrency.
The technical people in the industry can deny it all they want. But they have turned the RMB into the ultimate crypto that has already achieved mass market adoption (Without even bragging about it). With more than 1.1 billion monthly active users, it’s no wonder the RMB had to be the main currency on the platform. <-Creating a crypto just for WECHAT would have probably been their downfall.
Sure the WAY they achieved this is questionable. Sure the aspects BEHIND the app is 100% controversial and will likely be subject to lawsuits in Western countries. But they achieved it nonetheless. They have quite literally shown every crypto business the right way to get it done.
While the tech people can continue to say otherwise, the everyday person could care less. Why would I need to make a payment with Bitcoin, Litecoin or whatever is the trending currency to pay with today when I can do so with RMB on an app that I already do EVERYTHING with? Why would I accept the waiting times, the fees, the fear of getting hacked, the endless changing of platforms, the need to always secure yourself when it’s all settled on one platform?
There is absolutely 0 need. No wonder why majority of the riches business men and women aren’t talking or endorsing crypto.
For the Crypto industry, there is nothing more important than Mass Adoption.
Why?
Once countries start to follow in China’s footsteps. The whole industry is done. The blockchain technology behind everything we use to day will still be there 100% but the need for actual crypto would be eliminated. You honestly think the country you are in are sleeping on this? Keep dreaming. They’ve probably been spending majority of their budgets in areas like this for years. — Even countries like Singapore has seen the potential and put things in place.
Millions will be “cheated” out of their initial crypto investments due to bullshit stories about how everyone can be rich through crypto.
Truth is, crypto only make sense for a few industries. If you apply business sense to most of these companies, you’d eliminate majority of them from being a worthy investment.
Regardless of what you’re investing in. The main question to always ask yourself is why? Does it really have a future? Does it really make sense? Will businesses really use it? Will customers really use them?
A few industries that I feel will want/need crypto(not talking about blockchain)in the long-term? Personal opinions of course. As I’m far from being an expert in EVERY field.
The seamless cross-border transactions with low-no fees will be a big factor in changing these industries.
Every watch that video of Aston Kutcher on Ellen?
Others with potential, but will take far more?
- Logistics, Retail & E-commerce. — Too many factors will stop it’s growth. There are just too many eggs in the basket. Deciding who gets what first and how much would prove to be something people find almost impossible to overcome.
- Farming, distribution & F&B — Similar reasons. The act of putting “credit/$” into apps and making payment….there is something there. It’s just that nothing is concrete and it’s just too cut-throat of an industry to be messing about. Unlikely that progress will be made unless a major player comes in and invests big. Offering customers “an offer they can’t refuse” option to get market share is the only way forward.
- Property & Insurance — There is something here. I can’t personally quite pinpoint why I feel that way, but I feel that there is a big room for disruption in these two industries when it comes to crypto. There is room to slice out a lot of the superficial scams in both industries through blockchain and crypto.
I know that there are a lot of “good” businesses to counter what I have written here today. However, I’d highlight once again that it’s definitely an opinion piece written from my perspective, the circles that I’m following and the people I mix with.
But I stand by my opinion that most of these companies popping have simply saturated and eliminated a lot of the credibility built by very legit companies. Also, with companies like Telegram(not anymore it seems but I say BS), Line, Kakao & many more following in WECHAT’s footsteps, you cannot deny that if things don’t change quickly, things are going to get really tough for Crypto.
