Will history repeat itself?
The events of the previous weeks have brought great pleasure for all the crypto-friendly people since the increase in Bitcoin’s price has moved the entire market.
As a committed Bitcoin follower, these happenings have caused great joy for me as well. The future and the value of Bitcoin are very important with regard to the blockchain technology since, thanks to Satoshi Nakamoto, these two are very closely related.
It is important to note that this story, as of yet, is not a success story. A little over a year ago, we could experience the soaring of Bitcoin and other cryptocurrencies, and could also see how all the hope that thousands of people had for that price increase became shattered into pieces.
Hundreds of analyses have been written on the possible reasons that lied behind these events. Obviously, the easiest answer remained the false price increase generated by hundreds of failed ICOs. I partially agree with this reasoning. However, from a slightly different perspective, I need to say that this approach does not completely stand its ground.
Obviously, this can be contradictory from various viewpoints as, on the one hand, you may claim that the price increase was brought about by ICOs. This clearly had an impact on the popularization of Bitcoin. On the other hand, you may state that the trust people had in Bitcoin was what generated the immense amount of ICOs. Everyone may decide how they approach the subject on their own as I, in writing this, do not intend to go into details. Still, I would like to add that the possibility of tokenization and its practice did not come into existence the way many would have thought. Generating a token is of no risk. Thus, the outcome of the project does not matter. Benefitting from ICOs and benefitting from tokens — which promises the success of the ICOs — are two completely different matters. Many mixed up these facts. The goal was not the success of ICOs, but the profit made from trading with tokens.
Let’s try to approach the whole situation from a different perspective with a different interpretation. How many extraordinary achievements have been produced by the crypto-market and the projects that have become popular since the previous year? What progress has been made in blockchain technology by those who have earned millions or even billions in profit from the price increase of cryptocurrencies on the stock market? What have they given back to the community? Clearly, blockchain technology has been evolving. However, the goal of the long-term survival of the crypto-market should be to produce proper, well-functioning technological innovations that will strengthen our trust in the practical application of the blockchain.
I would not want to sound sarcastic, but we need to ask the question: What are these thousands of tokens (which are currently available on the exchanges) giving to the market? What can those projects that have not produced any results in years provide? Approaching the question from another way: What are they taking away? The situation triggers mixed emotion from me since the answer is quite straightforward: Nothing!
Many projects say that they want to exceed and get better than Bitcoin. From certain aspects, it is not a huge challenge as Bitcoin is of minimal technology. However, this aspect has no importance. Bitcoin is the standard and Bitcoin is the foundation of everything. If Bitcoin does not move, nothing will happen. Why? The answer is quite simple. The market capitalization of every cryptocurrency altogether does not reach the market capitalization of Bitcoin. The rest combined are approximately the half of it. How realistic is it to exceed Bitcoin in a competition where they cannot produce and represent any value over Bitcoin? How are most cryptocurrencies better than Bitcoin?
At this point, many would say that my overview might be wrong because certain projects are technologically superior and more people will use them. But what will more people use? At this point in time, we do not use blockchain for anything other than transactions. Even private key storage is just a small step forward. The majority of the projects do not do anything but try to duplicate and copy previous ideas without any added value to innovation. There are so many white papers and patents for blockchain that we might as well establish a library form the created materials. Where is its practical value? Where is the step that gives the possibility that history does not repeat itself? Of course, there are not as many ICOs as before, but we do not even need them as the current amount might also provoke the same collapse. There are thousands of worthless projects on the exchanges, and they do nothing else but take up space and possibilities from those who try to create value.
The question is easy: What is needed for the rejuvenation of the crypto-market? Technology is the brief answer; values that assure investors that they have, in fact, bought something other than a marketing concept. What has changed over the previous year and a half? What innovations did those who preached the most about Bitcoin’s fall come up with? The irony of the situation is that they are the ones who are most dependent on Bitcoin. Isn’t it contradictory?
We at the ILCoin Development team believe that there is a need for establishing a new market. We need to step outside of the current narrow interpretation boundaries and provide technological values. It is not beneficial that tech giants develop unbeneficial blockchains, and the participants of the crypto-market settle for stock market speculation. Do not get me wrong, I do not have a problem with the stock market and its competition. I have a problem regarding the approach that the crypto-market represents. I think it is not sustainable in the long run, and the only question is what the market can produce between its rises and falls. Unfortunately, the crypto-market has not been able to accomplish much. The promises, the marketing, and PR competition will all continue. However, this will eventually come to an end.
Of course, it is easy to find new people, and you can even reproduce once or twice what happened a year and a half ago. But only once or twice; not more. Has the second round just started? I hope not. But, at this point, hope is not enough. Cryptocurrencies need to create technological value. Otherwise, this market will never live up to the hopes and expectations.
This is exactly why ILCoin’s Development Team is continuously working on technological innovations in the fields of security, transaction capability, and data storage. Blockchain is what matters, and cryptocurrency is the meter for it. We believe that blockchain utilization and the cryptocurrency together should represent value, and self-conscious users should make their decisions based upon values; not promises. To achieve long-term goals, there is a need for more conscious decisions from the crypto community, and it is also essential that they use real results and technological achievements as a measurement instead of the power of promises.