Many of you have seen some extremely bullish videos and news posted in the last few days or the first few days of January talking about bitcoin and the Alt’s are going to go to their all-time highs. We want to point out, first of all at some of those videos we firmly believe we done purely for perspective o string to gain more viewers, some of them are delusional and some of them may come to fruition. But let’s have a look at what we think and what we see is happening.
If we are all familiar with the gold rush and the dot-com boom before, well yesterday I watched a video from Jeff Bezos of Amazon Fame from 2006 where he talked about internet after the collapse of the dot-coms. He made some really interesting comparisons and I think that they are worth exploring because there are some very pertinent similarities.
Basically, if we look back at electricity as he did, and pointed out the adoption of earlier electrical appliances. The thing that made it able to be integrated into our everyday lives, obviously we had lots of different inventions and we started off with the lamps and we went through to washing machines and we went through to all sorts of different household items that changed the ways we function in our houses, because previous to that we saw it just as electricity.
But the most important point is the infrastructure was laid out, the infrastructure was in place, so why is that important to bitcoin right now? We’ve never been bullish on the future of blockchain and I’ve never been more bullish on what it can do for us, as far as impacting our daily lives are concerned. We’re not a hundred percent sure what is going to be the killer duck that takes this mainstream, some would argue that’s already here, Bitcoin. We’re talking about widespread adoption people having to use this over something that they already used in their everyday regular lives.
What we want to point out is that the infrastructure is still being laid out. So, there are platforms that had tackles issue of scalability, issues of privacy, and issues of security. The issue is, that for a lot of platforms they’re still trying to tackle these basic infrastructure issues, which means, if we have a look at crypto kitties, is we have a look at some id these types of ducks that did get a little bit of traction during 2018, what we saw was a meltdown in networks and the inability to be able to scale readily, and the inability to be able to handle the volumes and the traffic.
Now, you imagine if you multiply that by 30, 40, and 50 times the users. We have a very low adoption rate at the moment and a significant lower amount of users, that we are in the very early days of the ugly old two cylinder washing machines and dApps and Apps that are showcasing the technology, but not as pretty and as user friendly as we would otherwise expect, were still a ways away from that.
Now, what happens if there’s a sudden influx of demand? What happens if the media changes that standpoint and view on Bitcoin and pushes it and says it’s the next greatest thing? So, what we only believe is that Bitcoin will return to all time high this year, I have no doubt about that, what I do doubt is whether a lot of cryptocurrencies will follow suit. I think there will be some that bring out well advertised solution to problems.
Don’t forget the issues with scalability, all eyes are on Ethereum where other platforms, such as Komodo, have already dealt with a lot of scalability issues. However, some of these platforms with higher fanfare get more traction and these could cause a little bit of stir. We’ve heard about BAKKT, getting delayed, we’ve heard about ETF’s(Exchange Traded Funds). There’s lots of little things that could cause buoyancy and enthusiasm in the market, if we want to be honest, what we really need for that to be sustained, and for that price increase to be justified and basically be able to sustain for any period of time needs to be based on something factual.
So, I think we’re still quite a way away from seeing this mass adoption, do we think it will happen in 2019? Well there is no way for us to tell that, we’re still at least a good year away from having dApps and products that are able to rival what we already have or replace supersede or even new dApps and Apps that weren’t possible before. I think we’re still laying the infrastructure, we’re still laying the foundations, and we’re in the early days.
So, for those people who think they missed out from investing in Bitcoin in the very beginning in those huge returns, there will still be needles in the haystack, and there will still be those diamonds in the rough. But we’re going to have to go in and try find those. Ultimately speaking, is a general trend, We think that Bitcoin will continue its dominance with the market and we think that Bitcoin will continue to grow in value, with that obviously some of those Alts will pull up as well and we’ll see some healthy recovery in the market.
I think we’re still a long way from the sustainable adoption and that is going to take the infrastructure to be fully ironed out, full interoperability. What we don’t want is to go back to the days of the Telco’s, where we had GSM and then we had Japan and America on completely different mobile networks. There was no interoperability, it was very hard to take your phone to a different country. What we want, is we want people to not have to think about blockchain.
This is very important point, we want people to be using an App or a product, and not be thinking this is powered by blockchain. What they want to be thinking is like this dApp, I like this product, it makes my life easier and it’s improving my way of life. We don’t care if how we look at how washing machines works, we don’t think about the advances in electricity and electronics, we all know that electronics has been amazing over the past years and electronics companies have come up with new technologies that will make our lives easier that we never have imagined that it could really happen.
Everything needs to be easy, we don’t want to think on how it works, we just need it to work. The market will be buoyant but we think that it will be large based on enthusiasm for the potential and the seeing of a lot of these problems being iron out. We don’t think that we’ll get the real traction or the market in the Trillion of dollars until at least next year when we have some widely available, scalable, safe and secured Apps that replace dApps that we already use.