In simple terms, Cryptocurrencies are digital currencies, which is decentralized and private. Bitcoin is the most popular among them , which might be heard by most of the people as compared to others common cryptos like Ethereum, Tether or Monero, which comes as one of the top 10 cryptocurrencies in the world, but not as popular as Bitcoin.
So, what drives popularity? Obviously, Users! Did many people know about Bitcoin in 2009 or rather 2010, when it was created? No, not as many as today. Similarly, there are other cryptocurrencies like Ethereum and Ripple, which sets their position alongside Bitcoin, which are eminent members of the ball game, which are slowly but surely increasing their real-usage cases.
Let’s look at an extravagant analogy!
Uber Technologies Inc, was founded in 2010 when people were very skeptical to avail the cab service. But, now after eight years, Uber has gathered around 17 million users in the world. At least, one out of three people in the US has Uber installed on their phone. People are always non-supportive about transformations, but when they get the feel of what a transformation can do, how it makes their lives easier, they are the ones who get habituated by the change.
Similarly, since the evolution of the Internet in 1991, it has disrupted the beings and now, kid you not, nobody can imagine living a day without internet as it has become the oxygen to sustain one’s livelihood. Cryptocurrency also started with nothing, but now there are around 21 million users or more. As people are getting to know the technology behind it, i.e., blockchain and the pros, that is driving them towards using virtual currencies. OnChain Transactions are increasing at a high rate for BTC and ETH, which shows the increase in the adoption rate.
Recently, Adena Friedman, the CEO of NASDAQ said that "cryptocurrency deserves an opportunity to find a sustainable future in our economy". She believes there can be two outcomes, considering the current scenario.
Recently Vitalik Buterin, the creator of Ethereum- the world’s second largest cryptocurrency has created abuzz in a show, by stating that Blockchain industry was about to hit a “ceiling.” He added.
He later clarified his statements in a twitter post that by saying “no room for growth”, he meant that there is no room for a 1000X price hike. The current Crypto market is lesser than $200 Billion which would mean that by 1000X growth the market cap should be $200 Trillion, which would mean that 70% of the world’s wealth will move to Crypto assets.
Reactions immediately began labeling Buterin as a doom-monger and pessimist, who thought the halcyon days of the entire cryptocurrency industry had come and gone.
He further tweeted that:
“If you speak to the average educated person at this point, they probably might have heard of blockchain at least once. There is no opportunity for yet another 1,000 times growth in anything in the space anymore.”
Vitalik added thinly-veiled criticism of TRON founder Justin Sun, who subsequently committed to his cryptocurrency growth forecast.
Vitalik’s statement drove the crypto space crazy as everybody started refuting this statement, especially Justin Sun- TRON’s creator.
Justin Sun was rather quick to respond to Vitalik’s taunt on his nature of hyping up Tron every now and then. Sun responded suggesting he firmly believes that the Cryptocurrency market will hit $10 Trillion market cap before Apple or Amazon -which already has hit a Trillion Dollar valuation recently.
Changpeng Zhao is not the only industry leader to have refuted Vitalik Buterin on the issue of the future growth trajectory of crypto. Joseph Lubin, who co-created Ethereum along with Buterin, also went on record saying that he doesn’t agree with his ex-colleague.
“I still disagree with this. I will say ‘crypto will absolutely grow 1000x and more!’ Just reaching US Dollar market cap will give it closer to 1000x, (which is just one currency with severe restricted use case), and the derivatives market is very much bigger.”
Is Cryptocurrency the real future? Well, the adaptive forces surely lead to optimism.
These use cases and predictions speaks a lot about the future of cryptocurrencies in 2019 and even after that. The blockchain (the technology behind cryptocurrencies) space is growing faster than ever. As these organizations and technologies mature, their real-world use cases will increase manifold, more than what we see today, reducing some speculative market elements to ground it in the actual performance, utility, form, and function of the next-generation of the internet. We have managed to add on some of the use cases, but there are many more.
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2019-09-03 10:17:52.482425 | 2 min