Hello everyone,
The price of Bitcoin is down by 30% to 40% since just yesterday.
I have been waiting for that to happen -- before investing time into the discussion we need to have today.
Here’s what’s happening with Bitcoin -- and what will happen:
Blockchain and cryptocurrencies are progressing through the standard Technology Hype Cycle (read Wikipedia article for know about technology hype cycle)
It is what happens to virtually all new technologies.
Here’s how it works:
At first, as more and more people become aware of the new technology, it starts to rise in popularity
The media capitalizes on the excitement, helping to further build excitement for the technology’s future.
Then, as the excitement level exceeds reality about the technology’s current capability – it reaches the peak of inflated expectations
at is where, as the name suggests, expectations are inflated beyond the capacity of the technology to deliver value.
In the case of Bitcoin and other coins, consider that:
- A currency’s purpose is to buy and sell things.
How many places can you shop at, with your Bitcoin? Virtually none.
- Blockchain, as a technology, has serious issues that have not been resolved. Without boring you with technical details, in its current form, it will not scale. That means it’s getting harder and harder for the Bitcoin platform to handle transactions.
And it will come to a halt unless there are some serious changes to how it works technically, which will be very difficult to implement, given that there is no company or focused group in control of it
source-google.com
I have worked in a lot of startup companies and I love this concept as its so true. That graph is actually called the Gartner Hype Cycle as it was first proposed by Gartner so its nice to give him some credit for it.