Why might adoption affect price?
The general consensus on the path to stability in any cryptocurrency is supposedly widespread use. The problem is complex, since without distribution among a wide network of users, volatility in crypto markets may continue to restrict the use cases of open blockchains in a sort of chicken and egg scenario. Stability is needed for many use cases, but more usage is needed for greater stability.
Crypto bulls everywhere have long praised the future of a new internet, with blockchains at it’s core. The question, is whether they are able to back it up with any sound reasoning; however as more Wall Street veterans jump into this new market, we’ve seen a surprising uptake in reasoned debate.
Mike Novogradz was one who hit the game early, and successfully predicted that Bitcoin would hit $10,000 by the end of 2017. Now well outfitted from that outcome, he has been recruiting a number of big heads from other banks to his new project, including Richard Kim from Goldman Sachs as COO. Not to miss a beat, we’ve recently seen the CEO of Goldman, David Solomon, announce that in addition to futures contracts, the firm may even soon offer services in direct cryptocurrency management. Others, including JP Morgan’s Jamie Dimon, have labelled Bitcoin a fraud and a scam, and seem to expect that it will just die out over time.
From the technology community, we’ve also seen a number of interesting claims. Of honorable note is John McAfee:
What’s the Beat?
Novogratz, speaking at the Beyond Blocks conference in South Korea, announced that while he expects to see institutions wading into the industry, real adoption is closer to 5 years away. This is in line with many predictions by firms such as IBM and Microsoft, who hope to supply the necessary infrastructure as blockchain usage becomes more widespread.
Despite this, there are already a wide number of users actively using Bitcoin and other cryptocurrencies to transact, so the question is really how fast that expands. IOTA, for example, provides robotics and sensor systems with the ability to interact and exchange value, and has recently partnered with Siemens as well as several other providers to offer blockchain compatible devices.
Alex is a full-stack developer and digital rights activist. He also works with the content platform Blockchain.wtf and The Blockchain Institute to develop software solutions and elevate the discussion of how this technology can be used to build better products both online and offline.