Opinion: Bitcoin is Doomed for Success
Each passing day, it is harder to stay neutral to the overwhelming popularity of crypto world. Governments are taking stances, new converts are boosting market capitalization, ICOs get issued, and new exchange and mining companies appear on the radar.
Still being in a middleware phase, cryptocurrency is adopted and pushed into the day-to-day activity with a hitherto unprecedented speed. It looks like humanity’s adoption and the learning curve is becoming way steeper. Each year we are getting readier to embrace each revolutionary idea.
If we look at the traditional curve of technological adoption innovations’ popularity is very much dependent on the number of its use cases. At the moment there is no a real change and significant improvement delivered by virtual currency.
It is fear that drives bitcoin. With the advent of Bitcoin, we are now faced with the modern day example of game theory. And while we are way before any useful and groundbreaking application of Bitcoin, FOMO is the strongest market force behind Bitcoin’s worldwide popularity.
Thus, it is not the acknowledgment of Bitcoin’s usefulness but a fear of missing out on this very usefulness when it comes. You don’t want to be the one banning crypto during its ambiguous phase just to miss out big when crypto shoots high.
The promised benefits of anonymity, breaking loose of the dictate of nation states and the chance to finally build one’s desired American dream look so understandably good. This is why the world unilaterally agreed on Bitcoin’s appeal without any timelines or guarantees.
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China can ban mining and Japan can ban exchanges. Turkey can issue their national cryptocurrency and the USA can impose taxation on crypto investments. All these just to lose out to the next Ireland who will ease the tax burden on crypto companies and reap off a return on a worldwide angel investment.
Truth is, everyone wants to be Ireland and no one wants to miss out.
The price of Bitcoin is already a huge bubble. And the price might grow way more as the world is headed towards the new fad of FOMO fever. But you know what? The price is justified! If people are buying, the price will keep climbing.
Giving up on the promise of crypto will be an acknowledgment of our powerlessness. It’s like saying we are going to die of cancer anyway and we are free to forego decades of extensive research. We will not buy it! The sunk costs are too high. We want to live! And if it means billions in investment, – let it be. There is no coming back, no acceptance of defeat.
In such a scenario, the only thing Bitcoin can really do is keep growing until a widespread, mainstream real-life application gets introduced wherein millions of adopters get onboard.
And as with computers, AI or virtual reality, the application of crypto will come. It might take another year or a decade. But it will come. And if it does not come to the majority of the world it has clearly arrived to the main stakeholders and crypto ecosystem creators. And they are not ready to give up on the game.
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