The lack of economic value creation carries the most significant problems in the crypto market

“The promise of Bitcoin is the Bitcoin itself…”

What did Bitcoin promise? The answer is fairly simple; it promised everything that it has become! Nothing more, nothing less. Even though Bitcoin needed some remarkable technological innovations, nobody really expects any from it. Bitcoin is being treated as the digital gold. In other words, it is a socially and economically accepted means of payment.

Can all this describe the situation of the altcoins as well? To this respect, the answer might not be so straightforward. Ethereum made much larger promises than Bitcoin ever did. Ethereum did not only consider itself a revolutionary cryptocurrency, but they also promised to revolutionize the world with their blockchain utilization. Have these promises come true? As I said previously, when asking someone what their first thoughts are about Bitcoin, the answer is very simple: digital gold. This question also seems to be legitimate in the case of Ethereum. However, the answer would be different as Ethereum’s biggest achievement has been tokenization; tokenization that has led to people experiencing losses of millions of dollars. It is still a big question as to whether these losses were Ethereum’s fault. However, one thing’s for certain. Ethereum has not been able to keep the promises Bitcoin has long kept.

Make no mistake, the purpose of my writing is not to shed light on some truth regarding the question of Ethereum versus Bitcoin, but instead to explain the simple fact that causes the current chaotic circumstances in today’s crypto market. Unfortunately, the creation of internal value of most altcoins has not been realized. Obviously, some projects are continuously working to deliver a higher level of service and value than Bitcoin, but this accomplishment has yet to become a reality. Claiming that some altcoins possess better technological systems than Bitcoin might be reasonable. However, my argument does not address this matter as it seems to be irrelevant from the standpoint of practical realization.

What is the need for hundreds or thousands of different altcoins when all economic needs of cryptocurrency can be satisfied by Bitcoin? As I see it, this is the real problem we are facing since the answer to this question suggests that there is no real economic need for thousands of cryptocurrencies. The only path for these cryptos is the force of market hype in today’s unregulated environment that characterizes current exchanges. Will this phenomenon trigger newer and newer investors to join and be part of the “crypto revolution?” Or is it more significant that people have experienced billions in losses due to ICOs and malicious hacking attacks? Well, everyone should answer this matter based on their own beliefs…

Here comes the question: “In the end, what is it that we can expect from the crypto market in the future?” It’s a reasonable question that would be hard to give a proper answer to. One thing’s for sure, though. Promises that were not kept must be made up for. Altcoins need to break out of their “alternative” role and start to offer technological improvements that help differentiate themselves from Bitcoin. However, this will only be realized if the widespread economic and social opportunities of blockchain utilization also do. Altcoins should not follow the footsteps of the values created by Bitcoin; they must open new markets and, by doing so, create new values. Whether or not altcoins can fulfil this task is a question yet to be answered. According to my own beliefs, most projects do not have the potential. Therefore, their long-term objectives will never be fully realized.

At the ILCoin Development Team, we have long recognized the situation and acted accordingly. I mean to say, we have shifted our direction. We do not aim to be an alternative to Bitcoin. However, what we aim to do is to create a technology that, by decades, exceeds the capabilities of Bitcoin. The technology we are talking about is the on-chain based data storage system that allows storing data efficiently and safely directly in the blockchain. It is a system that will revolutionize the way we store data. Also, it will help our cryptocurrency ILCoin acquire internal economic values that can contribute to successfully escaping the world of purely speculative approaches. The very next step of this project will be our fork that is expected at the end of this year. By increasing the block size of the ILCoin blockchain, we lay out the foundation for the creation of the on-chain based data storage platform.