The closure of Bitconnect certainly made news around the world. The mainstream media was all over it with glee. Anything that helps their agenda of showing how cryptocurrencies are a scam is welcomed by them.
That said, this was a great event for the cryptoworld. It was also wonderful news for STEEM.
This might sound a bit counter-intuitive but it is absolutely necessary. The cryptocurrency industry is in the early stages. It is not going to be a straight path to success. Some of the greatest successes in the world come as a result of failure. It is through adversity which an industry gets stronger.
Many are trying to draw a parallel between the cryptocurrency market and the Internet bubble. Obviously, they are trying to correlate the pricing action of each. Whether this is true or not in the long run remains to be seen.
What is similar is the path to success that each was and is going through. The Internet age also had its share of failures. There were legal actions which made headlines. At one time Netscape and Dogs.com were big names only to end up in the toilet.
None of the failures that took place during that period stopped the progress of the Internet. The same is going to be true with cryptocurrencies. The failure of Bitconnect is nothing more than a bump in the road. This will not derail the industry. The FUD is mostly created by the media so it is best to ignore it.
Even the bursting of the dot.com bubble did not stop the progression of the Internet. Withing a few years of that, Facebook was moving the world into the social media realm. By that time, the early days of the Internet and the struggles that went along with it were but a distant memory.
Bitconnect woke some people up. Things are not all rosy in this industry. While there are tremendous opportunities to make money in this sector, not everything is an opportunity to make money. Some things are best left untouched. Those of us who are around a while understand there are a lot of garbage tokens out there. We are going to see more headline of failures which will be to our benefit. Unfortunately, like the Internet with dog.com, we need to clear out some of the trash.
Moving to the other end of the spectrum, we have STEEM. In my view, this is the antithesis of trash. Steem is the top blockchain at the moment focusing upon a sector that should ensure incredible growth. "Tokenizing the Internet" opens up a lot of doors. There are billions of websites out there which can implement the content/reward system that exists on STEEM. It is going to be fun to watch all the applications that are created on this blockchain.
A situation like Bitconnect only makes a project like STEEM stand out even more. When you see something that crashes, the contrast of quality is further emphasized. The steem blockchain is on fire right now. Unlike many other cryptocurrencies, I do not believe the price action of the token has got ahead of itself. In fact, I think it fair to say that STEEM is under priced. This is one token that did not experience a bubble (if one existed).
While the entire cryptocurrency world is unbelievable to many since it is revolutionary, the bottom line is that STEEM is not some pie-in-the-sky thing tossed out there. We already have real world applications that are used by tens of thousands of users each day. The upcoming Hard Fork is going to bring in more people by automating the sign-up process. Add in Smart Media Tokens and you have a recipe for enormous success.
It is easy to mentally turn a temporary situation into something permanent. Nevertheless, when it comes to the world of cryptocurrencies, even though it was a difficult month and a half, the future is very bright. While situations like Bitconnect get the headlines, projects like STEEM are forging ahead with answers to existing problems. I often mention how STEEM is going to change the world and this is one of the reason it will. Development is consistently moving forward providing answers that humanity needs.
Bitconnect is not the last failure we are going to witness. As an industry, we need these events to move forward.
And through it all, STEEM will keep forging ahead.
To receive the free basic income tokens you are entitled to and help end world wide poverty, please click the following:
Pictures by Google Images
That's right, gotta expose the trash before the cream rises!
You have put this into perspective! Thanks!
Bitconnect shows that we're still early in this blockchain journey. Ponzi schemes have existed before and are there to rip people off. Bitconnect just shows it's also possible on this new technology too. But that doesn't define the technology.
Same with the huge number of Alt coins which will drop to zero - even though they have a great vision. The vision isn't at fauly, it's the execution. It's the execution of the idea, or lack of it, which will see them fail, not the underlying technology they're biult on. New coins will appear to fulfill the potential of the vision.
Every micro-failure helps drive the macro-technology forward.
When you consider the Internet (in terms of mass adoption) is only 20 years old, and with blockchain, we're now moving into what could prove to be Internet 2.0, these are very exciting times, and the next 10 to 20 years will create massive opportunities, and will touch all our lives.
But the most exciting part...
For the first time, we, the end user, will be in a position of power; the masters of our own destinies. As we are able to reap the rewards of the value we provide, through STEEM, and platforms like it (maybe even ALL through STEEM) we will be fulfilling the original vision of the Internet.
It's a compelling arguement, which will help convert the masses. Instead of producing content for somebody else to profit from (like Google, Facebook, etc.), the creator profits - with no middle-man taking their cut.
This is huge. It disrupts ALL media, from the printing press, through radio and TV, the music industry, the film industry. Everything we consume has been controlled by "a system", designed to profit from whatever is created. Designed to take away the power from the creator.
Until recently, creators were never in a position of power. That is changing, and that is why STEEM is incredibly well placed to become the, or at least, a bedrock on which this new economy is built.
Exactly.
In the beggining there was web 1.0 and users weren't creating anything.
With web 2.0 users started creating, but corporations would monetize it.
Enter web 3.0 and users both create and monetize.
Really like this statement, very spot on. I completely agree that it’s good to get past these scams since they distract from the real progress being made.
I’m actually surprised bitconnect went down so quickly, I thought they would last a while longer. Now we just need to get through tether and we’ll be in a really good spot.
Word! That's what it's all about.
If the price of BTC wouldnt of fallen so much then bitconnect would still be here, it was much easier for them to pay everyone with BTC being valued at so much
Texas closed the shop down early :D
off topic question: I just got a weird error message at steembottracker
is everything all right?
I feel like most people don't even attempt to see the differences though. It's like talking to my office coworker who gleefully showed me the tanking Bitcoin price, which obviously I shrugged off and simply said, "we shall see" (he thinks all of crypto will go to 0. I think he's a fool).
And other skeptics in the office who think along the same lines. They just don't accept that there is a possibility of something big beneath all of this hype. I'm not even asking for them to believe it. Just to acknowledge they could be wrong. You have to be a fool to completely dismiss the entire budding industry.
Anyway, back on topic... I agree that it is good for such scams to fail and fail quickly. We need to weed out all the crap that is not taking the potential seriously or are just purely exploiting the hype.
I feel your pain Eon!
Heck, everyone gets such a high and becomes such a happy camper when Cryptos are going down. They dance around in how "fools are losing their money" because they believe in fairy tales.
Well, those are the fools, and in time we'll show them eon.
Heck, that coworker will want a hole to hide in when things get rolling.
Stay cool!
I was commenting on a post recently where the author was raving about how many transactions Steem can do per second and he claimed that was the big reason Steem will win.
While I applaud the transactions per second and zero fees, the big win for me is the people. The actual community and also as you said above 'Tokenizing the internet'. Being rewarded for your time, effort and content is so encouraging to anyone in this platform.
The zero fees and blockchain potential are great, but to me...It's the people. It's the content. Bitconnect and similar programs I'm sure will come and go. But real people and real content will always have a place online.
That's why I'm in love with this place!
Thank you for yet another amazing post, I've been enjoying them a ton!
Yes! The people and the fact that it capitalizes on real issues.
And the apps that are coming with HF20, SMTs and Ned's vision of the blockchain....
No need to pick a winner. Everything adds up to Steem's success!
Exactly, so many websites will very soon begin to take a que from steem and steemit. This platform is the first of its kind. Words are gradually getting out and can be seen by the number of people who gets registered on a daily basis.
You just hit it in the head bro...can never be said any better...currently steem is outstanding . Can be seen in the weiss rating .
Agree, that's why it's so important that we keep on trusting the blockchain, rather than being influenced by any FUD or the fact that Dan says Steem is broken beyond repair.
I think this is true especially in a relative way. You look at the top 10 or 20 coins by market cap and it's easy to see that many of them are just ideas or are in very early development phase and look at their price. Compare that to Steem and the picture becomes clear.
If crypto market cap overall goes up, Steem is bound to grow, it's a given.
This is absolutely necessary if we want crypto go evolve. The decline in prices that is happening now is even more important for the future of crypto, this is absolutely normal and gives investors the Do's and Dont's. Investing in something that will give you daily payout and will make you reach in heartbeat, well... We've seen it before.
I really believe the next few years will be brutal for some people involved in shitty projects as the rpojects start to not meet their goals and slowly disappear with the money.
Absolutely. There are many projects which have been, and are still being created where they have no intention of developing anything. They're selling dreams. But there are also serious projects, solving real issues - and some of those will fail too.
It's early days, and there are a lot of sharks in the water. Easy money can be made, and while that's still the case, it's high risk. But with high risk comes high reward. You only need 1 of 100 [equal] investments to deliver >1000x return and you're a successful investor.
true story, bro ! its fascinating how things work :)
It's awesome how you're always putting out great informative posts about the industry and markets. I look at your posts often to get my head around all this new foreign stuff to me. I appreciate the effort and energy you put into your posts. Thank-you @taskmaster4450! Wishing you a wonderful day 💚
Bitconneceeeeeeeeeeeeeeeeeeeeect :))) sorry, I had to do it
To be honest I expected that the bitconnect fiasco will have a bigger impact on the markets but it didn't do a whole lot. The recent slump I thinks is due to other circumstances.
Yeah @taskmaster4450, the way I see it, for blockchain tech, there is no bad news. Anything that gets the words, "Blockchain" or, "Cryptocurrency" into the news is going to bring more new people into the fold, even if it's just someone doing a search for blockchain.
Nothing like a little controversy to drum up business.
This B+ in the Weiss ratings will certainly help; also @aatonop has arrived. (Andreas Antonopoulos)
Edit: @aantonop is his username.
@aantonop
You forgot a "n' @mattclarke.
Thanks taskmater ;)
I'm sure someone is already working on a replacement for Bitconnect. Something big and better.
We Steemians aren't going anywhere, except away from non-paying Nazi Facebook, and spending most of our time on Steemit, dTube, etc.
Actually, Facebook did away with gun sales in groups and now their doing away with coin sales too. But, of course you can still sell crack and skunk and any other new name drug.
Keep on preaching Task. No football for me today, I'll be searching for quality content. 😎
saw an ad for Zouk today on YT and I believe there's another spinoff already launched.
The dot-com bubble and the housing market crisis share one thing in common. The everyday folks, you and I, got into those markets towards the end and experienced the worse of the crash.
Crypto is the reverse as we were the early adopters instead of institutional money.why we keep having the massive crashes? Because the everyday Joe just blindly throws money into any/every coin without even proper research. The everyday Joe buys into FOMO and panic sells at a lost. Institutional money are very smart investors who understands the value in what they are investing in (internet) and doesn't panic sell but rather holds. They prey off the average Joe's lack of understanding of how markets work. Once the market gets overextended they know how to pull out and they sit back and watch as every inexperienced person panics and sells.
This market is a baby and this is the greatest investment opportunity we will ever have in our lifetime. It's sad to know that people are actually losing money in this market. All you have to do is proper research into solid coins and hold. It's really that simple but people overcomplicate things and usually end up losing money by doing dumb trades.
The failure of Bitconnect was inevitable, so the sooner we got it out of the way the better. We'll also see many of the coins currently in the wild fail. I think that's also inevitable since many don't even have working products, and won't for several years. Steem however is up and running just great, and the use case for it will only continue to grow.
If @ned can realize his vision, we'll be able to look back 10 or 20 years from now and see that this was just the start of the blockchain that powers the internet.
@taskmaster4450
I'm glad you brought up the the fact that in the crypto world, it's not always peaches and cream.
The internet bubble of the past has always been used a a propaganda point by msm, as you say , to really discredit all internet commerce, but alas Amazon proved them wrong as well as so many other internet powerhouses.
Neither will the naysayers have an effect on crypto. To me, the cries that are saying I told you so... is a good indicator that crypto must be scaring the old boys counting their mounds of their devaluating fiat paper.
Keep showing us what's beyond the horizon line.
Lynn
Ha, I was getting into arguments that it was good at everythings ATH. I support crashing early and often. Its the whole thing of an unregulated market, people are going to have to learn to use their own head, and that is going to be painful. The sooner we can teach the nessecary lessons, and reinforce them, the better.
Of course these lessons will have to be taught again to the next batch of students, but when the current fuss dies down, we will have another group of graduates.
As for steem, its its own economy. Our spending power abroad may be down, but in the homeland daily life carries on.
Hi @taskmaster4450
You perfectly notice positive moments even in such negative incidents. Yes, undoubtedly the situation with Bitconnect is sad, many people suffered both financially and morally. But I also see the positive side that this will be a great lesson for all affected people. As the well-known saying goes, people learn to make mistakes. With this situation you can not do anything, you must accept it and draw conclusions.
One more thing, this is the fact that the people who popularized Bitconnect have now been discovered and they will not deceive anyone anymore.
Good article, thanks
That's also probably one of the main reasons why Steemit got a very good Weiss rating.
There's clearly more intrinsic value in the Steemit platform compared to some other crypto projects. Steem as a currency is actively used by so many people every day.
You can clearly see that if you look at the number of transactions on the Steemit blockchain.
good post tnx...for sharing...
I think if bitcoin goes down it will hurt steem in the short run but be good in the long run.
are you talking about that bitconnet that was scame are you
I totally agree with you,i have read about it somewhere before,the rate at which it is moving is gradually and encouraging,i plan to invest more in it,thanks for the post.
very important news for us to know @taskmaster44
I have read everything, very good and information we should know.
Good post dear.
That all sounds very promising for the future of steemit. Thanks for your insightful post.
Excellent notes...The one thing people dont know that things in the world with the big sharks happen upstream, opposite to what we see and media talk about
Could not agree more. If you did not have failures like Bitconnect, you would not be able to contrast successes like steemit. Anything good takes time. We are headed the right direction. Great article
whether people like it or not, blockchain and decentralisation is here to stay! yes it has its ups and downs but that just shakes out weak hands.
Steemit is also growing so quick! check the stats out here:
https://www.similarweb.com/website/steemit.com
Actually all of the negative things that are happening, even hacks, are going to help spur on new improvements and more caution which is something that hasn't been present up until now. It sucks seeing red, but will produce a stronger market. Nice take on things
I agree with the part where you say that events like BitConnect will only ensure that the quality of STEEM and the steemit community will shine.
But definitely the BCC crash/scam was not a positive thing for the markets and for the technology, since then we are going down for a long time. Being BCC one of the reasons but not the main one.
I think that, once everyone gets educated on which coins are good and bad, less things like this will happen. It happened with the internet.
There are scams in all industries/communities and we will all be stronger if we remove them. It would be awesome it there was a scam league so people could quickly check to see if the investment has been "flagged".
It took too long for bitconnect to blow up and any thing we can do to accelerate scams destruction should be encouraged.
I don't think netscape deserves to be put next to bitcconnect and dogs.com. Netscape was cool in its day and was used and loved by many. It was simply out innovated
Bitconnect did not wake me up that it was a scam. But it woke me up that weak hands/dumb money does exist in the market. How silly one has to be to bet life savings on that BS?