There is still Blood in the Streets Roughly a year after the cryptocurrency market exploded and surged to unimaginable heights, there is absolutely no doubt that the market is continuing to exhibit bearish signals. The current state of affairs in the cryptocurrency space is of sharp contrast to the status quo. While news articles with negative sentiments and statistics of unsuccessful projects seem to be in unlimited supply, previously enthusiastic community members appear to have lost interest and are selling all of their crypto holdings or restlessly waiting along the sidelines which appears to exacerbate the problem of low volume and tight liquidity within the crypto market. Even worse is the fact that these fence-sitters and critics of crypto are having a field day rooting out and having a field day with the bad nuts in the cryptocurrency industry. At the same time, regulators have also been breathing down the neck of ICO teams and the current regulatory landscape is still somewhat vague.
While the picture of the cryptocurrency market looks increasingly gloomy, not everyone is in despair or complaining about the state of affairs in the sector. Blockchain developers, ICOs and those from well-funded organizations like the Ethereum Foundation, TRON Foundation, and the Litecoin Foundation, understand that to bring about real change and improvement using crypto technology, more time and effort will need to be spent on building solid projects that do not simply churn out speculative instruments and to the moon valuations. Rather, blockchain and crypto-projects need to provide useful solutions that can be easily applied to everyday life. Instead of engaging in finger pointing and blaming individuals and projects in the industry, time must be better spent creating or supporting projects that deliver real-world solutions.
The Focus Should be on Good Projects Capable of Driving Adoption
As mentioned earlier, some experts, including Ethereum co-founder, Vitalik Buterin , are of the opinion that before there can be a turnaround in the crypto market, there has to be a change of focus from hyped speculative tokens to projects with real use cases. This way the utility of the crypto projects for users would naturally cause the general public to have a more positive outlook on the entire cryptocurrency space. World-renowned cryptocurrency technical and trading analyst, Tone Vays, is among industry influencers who believe the majority of overhyped projects are still overvalued. In his opinion, the cryptocurrency market must get rid of most of low fewer quality projects before any possible bull run can occur since such projects are unlikely to survive the current bear market.
As the audience is well aware, there are multiple use cases for blockchain technology. The world realizes this and there are a plethora of fantastic cryptocurrencies in existence that are seeing absolutely zero use even though they have strong use cases. Naturally, a significant portion of the crypto-community views cryptocurrency as a store of value and others simply use them as investment instruments but this is not sufficient enough to catalyze greater adoption of the blockchain technology the majority of tokens are built upon. Additionally, few of these use cases foster the actual use of cryptocurrencies like the payment use case does. What this means is if crypto-payments are the lynchpin to wide-scale adoption then crypto-payments technology needs to improve to the extent where the network can rival current non-blockchain based payment systems. Hence, it makes sense to put more effort into supporting quality payment-focused projects.
It’s not Rocket Science, but it is Complex...
One could say that discussing the need for competitive crypto-payments infrastructure is ‘kicking a dead horse’ but it is equally important to address the biggest stumbling block in the adoption of payment oriented cryptocurrencies. This has to do with exchanging different cryptocurrencies during the process of making payments as well as transferring the different tokens across different blockchains. The typical discussion about crypto-payments tends to revolve around fiat to crypto or crypto to fiat transactions, or how to convince people to acquire crypto securely and effortlessly in order to spend it on consumer goods. Making and accepting crypto payments has an added layer of difficulty that has not yet been resolved with a universally accepted solution. For instance, when merchants accept cryptocurrencies as payment, crypto to fiat exchanges are not the only difficulties they face. There is also the challenge of making crypto to crypto payments and exchanges on the fly without incurring loss of funds due to variable exchange rates of crypto-to-crypto pairings, exposing oneself to tax liabilities, or losing invaluable time to logging in, entering 2FA, waiting on transaction confirmations (which greatly vary between cryptocurrencies) and then making the swap (or in s...