MIT Digital Currency Initiative Advisor Talks About The State Of Altcoins In The Crypto Bear Market
Crypto Investors Should Not Get Rid Of Their Coins Just Yet
There is no denying that cryptocurrencies have suffered a major change in the last 12 months. Within a few short months, every coin on the market was launched to heights never seen before, only for things to take an unexpected turn in January 2018 and bring them all back down.
Overnight, investors, traders, commentators, and even regular crypto enthusiasts went from being more bullish than ever to being suspicious and reserved. The fact that ICOs turned out to be the wrong way to go about investing in new coins did not help either. All those who believed to have found a new was to launch a successful business quickly or get rich overnight had to face a harsh reality, which is that investing comes at a risk, and there is no easy solution.
After months of hype followed by a year of price drops, failed projects, and a general crypto winter, it is time for everyone to realize that the middle ground needs to be found. The first step towards any market stability and further progress is to realize that cryptocurrencies are not a magical solution.
It is true that there is value in cryptos, and the fact that they survived 2018 was proof of this. They did not disappear at the first sign of trouble, and those who remained in the crypto space even while the storm was at its worst are also proof that there are people out there who understand their nature. However, it is also not realistic to expect that digital currencies will simply be adopted easily and without any fight. For this to happen, they need to be able to offer stability, especially if people and entire businesses are to depend on them.
As a concept, cryptocurrencies and blockchain technology offer a step into the next stage of technological and financial development. They can revolutionize almost every other industry, sector, or area of business. As such, they should not be completely disregarded. However, they need to be approached with caution, at least until they are properly regulated and fully adopted.
Crypto's road to mainstream usage needs to start by careful examination of different models. That way, it can be determined which coins offer the best starting point for further development. Once this is known, the next step, which is the proper way of bringing them to the market, can be made.
Where To Start?
So far, cryptocurrencies have had a lot of success in industries such as entertainment, gaming, online media, and alike. Because of this, these industries might be the best way to start their further expansion. However, the introduction of crypto even to these industries has come suddenly, instead of gradually, which was likely the wrong way to introduce a new form of money. The adoption of digital coins depends on whether or not regular users with no technological background and knowledge can understand them and know what to do with them.
Projects will likely have a better chance of achieving their goal if they start with traditional forms of money which would allow their customers to get involved easy. However, projects should also be transparent with their intention to switch to crypto at some point and allow users to have a better experience and prepare for the change in due time. This would be a good way to go about online games, for example.
Simply put, it would be easier for businesses to start by creating their community and then introduce the token as a method of making payments.
Of course, there are numerous tough questions to answer, such as how to start business development, what business model would be the most profitable, and how to encourage user growth. These and other questions were the problems that eventually brought down ICOs, as there were no proper answers that companies came up with. Most were simply in a hurry to use the ongoing hype and get the necessary funding, which caused a lot of businesses to fail quickly.
While cryptocurrencies are likely to stick around for a long time, and possibly be the innovation that will one day take over the financial world completely, many questions require an answer before any of that can occur. These answers are what will drive further development.