Are Blockchain and Cryptocurrency really the next big thing?
Wow, we live in exciting times! My generation has watched technology change immensely over the last 40 years. Eight track to record, record to
cassette tape, cassette tape to Cd, Cd to digital. Every-time a new technology surfaces it is a race to get this technology mainstream.
Look at the electric car industry, another industry that has developed in my lifetime. Tesla was not the first electric car, but the first to make going mainstream viable. Now, after years of possibilities, it seems like every car company is jumping in and has an electric car out or coming.
Elon Musk and Tesla will forever be know as the company who brought the electric car to the forefront of mainstream use and probably be the leader in that category for the foreseeable future.
Will you be part of the next technology shift? (Blockchain & Cryptocurrency)
Why does this matter to you? We are in another one of those times, but this time around we have a plan for anyone and everyone to get involved and take, maybe the biggest technology since the internet, to the masses.
I am sharing an article by my business partner and friend Orrin Woodward as he shares about this coming wave of cryptocurrency and blockchain.
What if you could get involved, without the speculation and huge risk associated with this technology? What if a group has solved the problems holding this technology back? What if there is a solution so seamless anyone can benefit from the use? Get ready to be a part of something exciting! C-4 project early 2019!
Posted by Orrin Woodward on November 1, 2018
The Crash of Cryptocurrency
The price of Bitcoin, after an impressive 2017 boom, busted in 2018, a bust that depleted 65% of its price in a mere 30 days. Bitcoin, however, was not alone, for the market capitalization for all cryptocurrencies tanked also, wiping out over 342 billion dollars in market capitalization in the first quarter of 2018. And by September of 2018, cryptocurrencies had bottomed out 80% lower than its peak, causing the Crypto collapse to have the ignominious title of the worst bust in history, surpassing the egregious 78% Dot-com bubble bust of 2000.
What Caused the Boom?
Although Crypto speculators, those who banked on the “Greater Fool Theory” of investing, lost their shirts, the underlying technology was solid. Blockchain, as a technology, is impressive and can be used in many different applications. As a matter of fact, world-renowned economist Doug Casey believes the invention of blockchain technology compares favorably with the birth of automobiles and recently stated blockchain is the biggest thing to hit the world stage since the internet itself. The boom, not surprisingly, was caused by people who recognized the potential of blockchain and cryptocurrencies, but unfortunately, many did not understand the challenges withholding it from mass adoption.
What Caused the Bust?
The rise and fall of Cryptocurrencies teaches us, yet again, that one’s walk must be as good as the talk to build longterm success. Indeed, until the challenges holding back mass adoption are conquered, cryptos talk will be better than its walk, and the dream for blockchain will remain merely a dream. Millions of people can invest in Crypto, but until it’s used as money, rather than an investment, the merchants won’t come on board and the customers won’t stay on board. One cannot invest merely on hype and hope, and like every other bubble in recorded history, when promises are not fulfilled, the resulting penalty is harsh. The whole Crypto model must be re-engineered to address the root cause issues inhibiting mass adoption, and adoption that promises untold wealth of the group that solves the riddle.
What is the Prognosis?
At times like this, it’s important to not throw out the baby with the bathwater, for the blockchain baby still has an impressive future when a group of entrepreneurs can simplify the process. Savvy entrepreneurs, on the other hand, must solve the underlying issues, focusing on real world solutions to achieve the critical breakthroughs necessary to make blockchain and cryptocurrencies live up to its hype to turn the financial world upside down. To turn this dream into reality, LIFE launched the C-4 project, a joint-venture platform that solves the main issues holding crypto and blockchain from living up to its potential. To be sure, this isn’t going to be easy. In fact, many experts, perhaps once bitten and now twice shy, have cooled on mass adoption estimates. Evgeny Yurtaev, for instance, the Founder and CEO of Zerion, noted, “In my opinion, we are far from real adoption. There is a lack of use cases for cryptocurrencies apart from speculation. The development of new consumer-oriented products finally started to happen this year, especially in the financial sector. Issues of usability and scalability are the factors that lead the emergence of new use cases and drive long-lasting adoption. But I doubt that this process will be even near completion in 2019.”
Melanie Mohr, the CEO of YEAY, was even more cautious, observing, “Crypto is going to be massive, but not by 2019. Most are trading and speculating but are far from realizing the actual technology. In order for a mass scale to take place, the blockchain needs to become easier and faster. It won’t handle a big scale by 2019, but give it five years and I can see it happening.” Finally, Max Tsaryk, the CEO of askfm.io, hedged the most when he proclaimed, “Big players from different markets – IBM, Starbucks, and Telegram – have already expressed interest in blockchain and I believe that the overall number of crypto users will grow by the end of 2019. However, mass adoption will take much more, maybe 5-10 years. It depends on factors such as regulation, trust, and acknowledgement.”
What are the Challenges Holding Back Mass Adoption?
There are three main payment obstacles inhibiting cryptocurrency from being used for everyday transaction:
1. Price Volatility
In 2017 alone, the Bitcoin price fluctuated between $1,000 and $20,000. Big swings in price make it unattractive for day-to-day transactions, for who want to buy a pizza only to discover later he paid over a million bucks for his 25 dollar meal?
2. Slow Transaction Times
The average confirmation for Bitcoin takes about 20 minutes per transaction right now – but during past stretches of activity (such as in Jan 2018), it got as high as 41 hours. Who is going to buy everyday things in an everyday manner with those transaction times?
3. High Transaction Fees
The average transaction costs around $1 right now, but recently the average Bitcoin transaction was $40. These fees make it unattractive to use this technology as a medium of exchange (money).
4. Not Enough Retailers Who Accept Crypto
Bitcoin, for instance, the biggest name in crypto, has only 13,328 locations in the USA that accepts it. At our major function in Winston-Salem, only one location (a guitar studio) actually accepted crypto. Imagine that, billions of dollars invested in Bitcoin and yet only one location in a city the size of Winston-Salem even accepted it. Cryptocurrencies are suffering from the chicken or the egg challenge. Entrepreneurs go to the merchants and proclaim, “I have this revolutionary digital money that will bring freedom to the people and will replace fiat money.” The merchants respond, “Wow, that’s awesome. How many people will buy with this cryptocurrency?” When the answer back is, “well, not many right now, because no one want to use it as money and so we don’t have many merchants, but we hope to soon.” The merchants give you the cold shoulder explaining they have no interest in doing all the technical work to accept a currency no one is using nor using this alleged money if they cannot spend it anywhere.
5. Not Enough Consumers Who Use Crypto.
The mass consumer is no more interested in the cool cryptocurrency idea, even if it could break the Financial Matrix, because he is looking to purchase goods and services, not solve society’s issues while shopping. Since most people currently are buying crypto with the hope of it going up in value rather than using as a currency, the model is deeply flawed, to say the least. People are treating crypto as an investment not as a medium of exchange. The problem with this, of course, is if it’s an investment, then its not money, for money is the most popular medium of exchange to acquire goods and services. Money, in short, must be widely exchanged or is not money at all. The average customer desires popular stores that he/she visits regularly to be part of the platform, but the problem is it takes tens of thousands of consumers to attract the big merchants. Imagine going to customers and saying, “Hi, I have revolutionary new money and this money will free you from the Financial Matrix and protect your production from inflation.” Their reaction is, “Wow, cool, where can I use it?” When the answer is, “not many places, yet, but we hope to get all the big names down the road.” Of course, the average customers doesn’t have extra money to speculate and thus says to check back with them when you get the stores he/she uses. The chicken or the egg challenge strikes again.
What is the Opportunity?
The Crypto experts, to be sure, still believe blockchain has a great future, but they have punted in the present. We, on the other hand, believe the future is now because the C-4 project has addressed the five main roadblocks, roadblocks that when solved will lead to mass adoption of cryptocurrency. Imagine having a five years head start on the rest of the players in the Cryptocurrency field? The potential to be first to market in a viable system that makes crypto available to the masses in a simple to use app? Just as Apple made computing easy and AOL made surfing the internet easy, our joint venture app has made cryptocurrency easy. Like one of my early mentors use to say, “Serve the classes, live with the masses; serve the masses, live with the classes. The C-4 project is serving the masses by helping them save money, generate crypto to use across all the stores in the platform, and learn the Three Keys to Wealth to create Financial Security or even Financial Freedom for the successful entrepreneurs.
I will do a second blog post in the next few days to explain how the C-4 Project addresses each one of the roadblocks to mass adoption and is the first to address every issue systematically. I LOVE Entrepreneurship!