Is Hype Healthy Or Harmful For Blockchain Technology’s Adoption Curve?
Is Hype Killing The Blockchain Technology?
We all know that the blockchain industry is facing hard times. The bear market has affected its main product, the cryptocurrencies, so not a lot of investors finished 2018 very happy. However, some are more positive about the future, thinking that this technology can achieve its goal if it faces the necessary obstacles, but what are they?
Yessi Bello Perez has recently published an article on The Next Web’s Hard Fork trying to explain the situation. According to him, the hype is what is killing the blockchain.
Perez has started to cover the blockchain and crypto sector back in 2015 but is back now and he believes that what was being said four years ago when people did not believe the blockchain is repeating today. While he does acknowledge that the industry is far more mature today, he also notices that the hype cycle is the same and that this can be bad for the technology in the future.
The supporters of the technology often describe as something that can change all industries and venture capitalists poured a lot of money in the industry, but they are all buying promises made by hype. They are speculating, in Perez’s opinion, and this can have a bad impact on the technology down the road because the hype is real and very high.
What Problem Is The Blockchain Trying To Solve?
The blockchain technology is often treated as a magical panacea. This is undisputable. The technology may be very interesting, but I have to agree with the article author that people simply believe that they will be able to use the blockchain for everything, which is simply not the truth.
It has been proved that the technology offers interesting options for the financial industry and, in the case of the logistics and tracking sectors, it has already been proved that the technology is, indeed, being used to make several important changes and improvements.
However, outside of the specifics of the logistics sector, what are people trying to use the blockchain for? Perez points out that not a lot of industries actually need the blockchain, and this is why it is failing. They believe the hype and buy the panacea but it is not actually a panacea but a very specific and interesting technology.
According to him, after 10 years of Bitcoin, people simply have to ask themselves more about what are they actually trying to get and which problems they believe they can solve with the blockchain.
For instance, the author makes a very important point when he affirms that taking out the intermediaries like banks is an idea infused with the libertarian ideology of anarcho-capitalists. However, some banks are very bullish on the blockchain technology and they are obviously not interested in taking themselves out of the equation.
This can obviously lead someone to believe that the interests of the most hardcore users and developers differ a lot from the interests of the banks. Also, this technology is receiving massive attention while it is only mostly offering promises at the time.
Perez believes that this may only lead to disappointment and that people will have to hype the technology less in order to discover how to fix real problems and scale the technology, instead of using it in a speculative manner.
Is hype killing the blockchain? Personally, I’d say that this is a very exaggerated affirmation, however, Perez did have a point. The blockchain needs more use cases and real signs of progress, as we all know that hype only leads the market to go up and down just like last year and only the speculators are interested in that.