Where is cryptocurrency going? What is going to happen with the markets? How will this all unfold?
One of the interesting things about what is taking place is the idea of technology. While most are focusing upon the monetary aspect of cryptocurrency, there is the technological component that is equally important. For this reason, it does fall under the tendencies of what we see with other technologies.
There is a ton of potential with cryptocurrency. Blockchain is bringing the idea of distributed ledger technology to the entire world. This is a radical notion when we consider how financial data is housed. It could radically alter the entire global economy.
Of course, the incumbents aren't going to exit quietly in the night. There are trillions of dollars of business at risk. This is going to be a massive fight. We see this happen each time a new technology enters the picture.
All Or None
With cryptocurrency, there is the question of whether the masses will adopt this or not. Proponents see it as a natural extension of the existing Internet, Web 3.0 if you will. Those who are against it believe in the soundness of the existing system along with the powers of government.
Technology tends to be an all or none proposition. This is why disruption is so powerful. We tend to see the incumbent system really worked over. After all, Netflix did not coexist with Blockbuster. Smartphones are not operating side-by-side with the old ones. Many believe electric vehicles will keep gaining in sales volume and will obliterate ICE vehicles. We will have to see how the last one works out but big bets are being placed.
If cryptocurrency, along with the different elements such as DeFi, take over, it is going to be a windfall for all involved. Of course, we have to acknowledge there is likely no middle ground. Failure to gain acceptance means there is probably no place for cryptocurrency in the future. After all, the existing system does have a medium of exchange that has operated for decades. In fact, some aspects are receiving a technological upgrade which should improve how they operate.
Ultimately it comes down to the question of who is in control of the ledger. Proponents of the existing system believe it should be the banks whereas crypto enthusiasts believe in decentralization.
To me, this is the crux of the entire battle. Therefore, we are not going to see a blended system. It is akin to Netflix or Blockbuster: what is the delivery system people will opt for?
Lambos Or Ramon Noodles
Taking this idea into the monetary aspect, the technology is going to either pay a huge return or leave us all desolate. That is the path we are on. If successful, those involved we see massive gains.
In the United States, we have a product called Ramon Noodles. These are completely processed, inexpensive meals for when soup costs too much money. It is a symbol of living the non-high life.
Failure of cryptocurrency could have us all living on Ramon Noodles. This is in sharp contrast to driving around in Lambos. Again, there isn't going to be much of a middle group.
Will people accept a monetary system that is outside the control of the banking system? Is this something the masses will adopt over the next decade?
These are the core questions which will determine the future of cryptocurrency and, by extension, the value of our wallets.
Build Around The Existing System
Netflix did not immediately take over for Blockbuster. It was a long process that unfolded over a number of years. One of the keys was for the infrastructure needed to provide video without the need for discs. This was the major change.
Similarly, we are in need of a lot more infrastructure before cryptocurrency can be a threat to the existing monetary and financial system. This means not trying to replicate what is in place but, rather, simply building around it. There is no reason to integrate with what exists. That would be like Netflix streaming on behalf of Blockbuster.
The banks will want to tap into DeFi since they have existing control over the money people have. However, one of the keys for cryptocurrency is for DeFi systems to operate in areas that the banks cannot reach. This will eventually make them redundant. We could actually build this up to replace all layers of the system.
In the end, this is what the monetary component is tied to. The technology that is being constructed to provide a working system outside the banks is vital. At this moment, we only have the basics. However, the bear market is providing a wonderful opportunity to keep building. This will have a tremendous impact down the road.
There is a core group within cryptocurrency that is placing the bet on the future. We know that many are fly-by-nighters, simply entering and exiting based upon the market. We also see crypto-influencers who have no interest in the application of this. Instead, they only seek views on Web 2.0, a step to enhance their earnings from Google.
Those who are fully committed to the grind will be the major winners...or losers depending upon how it all turns out. If the general public wants a monetary system where the control is outside the bankers, then those involved will do very well.
At that point, it will be Lambos for all. Of course, if this gets rejected, the other end of the system will arise.
Ultimately, this is a bet on technology and what the masses will embrace. That is what we are betting our future upon.
Place them when while the wheel is spinning.
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