All eyes are on the inflow of money.
Since the start of cryptocurrency trading, the value of different tokens is basically a result of the inflow (or outflow) of fiat. The entire industry revolves around the ability to bring in capital.
We saw this during the bull market near the end of 2017 when billions of dollars (and other currencies) poured into the crypto space. Just as quickly, at the start of 2018, the trek reversed itself. Over the past couple years, the crypto world was mired in a horrible bear market.
Telegram is one of the most commonly used messaging applications. The company behind it decided to do an ICO which raised $1.7 billion. This got the attention of the Securities and Exchange Commission (SEC). Telegram was targeted for illegally selling a security.
This is standard practice at the moment, making anything to do with fiat in the crypto world very difficult. Newer projects are behind the proverbial 8-ball on this one. Tactics that were used a few years ago are only going to get one in trouble.
Even Block.One, the company behind EOS, found itself in the crosshairs. Of course, the $20 million penalty they paid in lieu of the $4 billion raised was nothing.
Since bringing money in is getting very difficult, there is really only one viable alternative. The crypto world is now going to have to focus upon development and use the ability to create tokens as the basis moving forward. Just like Hive was able to fork Steem, creating another token in the process, wealth can be generated using this same model.
Naturally, without any users or people who are interested in the project, there is little value there.
We are coming upon another stage in the maturation of the industry. Each success can be built upon. This will help the tentacles to reach a bit further out. Each new project that has a degree of success can help to improve the numbers.
Ultimately, whether we are discussing cryptocurrency or fiat, it all comes down to the network effect. How many people are using the currency AND what is the trust level. When we look at a currency like the Venezuelan Bolivar, it is easy to see how few trust it. To contrast, when the crap hit the fan, investors all over the world jumped into USD. In a time of crisis, for right now, the trust is in the dollar.
Cryptocurrency offers a number of benefits over fiat. However, to realize that, we need to see the growth of the user base. Since crypto used for payment is minimal, the only other option is to attract people via other purposes.
This is where a blockchain like Hive can excel. The development of different applications and games can serve as a way to entice people into the crypto world. As they progress, their bags will grow, hopefully providing them with more wealth. Since that is already in crypto, the possibility to get involved in other things, especially if using a DEX, inreases.
Here we see how the hands of the regulators are tied.
Of course, without the network effect, we are dealing in something that does not have great worth. While everyone is awaiting the "killer app", we need to realize that crypto, itself, is the killer app for blockchain. Now, it is just providing people with the projects they can utilize.
While a bull market is always possible; in fact, likely, it is not easy to count on one. It might take a while before we see another run.
That said, we do have the ability to develop and expand. Organic growth is something the SEC cannot get involved with. Something that was airdropped, like HIVE was, that explodes in value can only leave them scratching their head.
Some of the biggest technological projects of today were started on shoestring budgets. Throughout the history of the Internet, especially Web 2.0, we saw a lot of household names stared in dorm rooms.
Since cryptocurrency and blockchain are pieces in the foundation of Web 3.0, we are following a similar path. It is likely the mega-application of tomorrow will not come from a heavily funded outfit such as Block.One. Instead, it will be something that is developed outside the view of most, only to capture the attention of millions upon release.
What that will be and when it will happen is anyone's guess. That is why it is crucial for projects of all shapes and sizes to hit the market. Many will fail which is part of the process. When looking at this from a numbers perspective, it will only take a few successes to radically alter the landscape.
Ultimately, we are creating an entirely new system as compared to the one that is existence now. We are establishing alternatives for people. This is crucial.
For us to achieve success, we must tend to our side of the street. Focusing inward to expand outward might be the best possible solution to what is ailing the world financially.
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