Our first post of this new year was just thirty days ago. Entitled “2018: The Year of the Crypto Hangover?” we introduced you to the hype cycle that impacts nearly every technological breakthrough–including cryptos and the blockchain.
What we are now witnessing is the beginning of the crypto market’s slide into “the trough of disillusionment.” It follows the peak of inflated expectations, which is when new technology is held out as the answer to all of mankind’s problems (hyperbole admitted).
But then reality rears its ugly head, and the markets react. Negative press begins in earnest. Doubts are cast on the viability of the technology and its promises. Yet that is when the real work begins.
The early pioneers in technology serve a useful purpose. They bring forth new ideas that humans have never before thought possible. It is rare, however, that implementation of the initial ideas end up being the “gold standard” – the ones that produce applications that truly transform society.
It’s in the trough of disillusionment that the hard questions are asked:
- Is the original technology viable?
- Are there limitations that everyone has overlooked (blockchain transaction scalability)?
- Can those limitations be overcome?
- Is it going to require a new iteration or evolution of the initial technology?
- Is there a newer application of technology better suited to solve the problem?
Now we get to watch innovative companies ask and answer these questions. This is the time to take a deep breath and be patient. Terminology that has been loosely thrown around will now be cleaned up. Clarity will emerge, and the cream will rise to the top.
And that is what we are excited about.
Digital assets are here to stay. So are cryptocurrencies. So is digitized ownership of real assets such as silver and gold bullion (which we’ve been providing our clients for years). Those are all three very different things, yet over the last 12 months, they were a conflated mess. That’s about to change.
The slide into the trough of disillusionment began a bit earlier than we expected. It’s no fun for those who were on the front of the hype cycle curve. Yet 2018 and beyond will be an exciting time for those who have waited to build their solutions based on the answers to these hard questions. We’re on task. We’ve been asking those questions for months.
The answers are forthcoming. Now the work begins.
The post Cryptos Enter The Trough of Disillusionment – Now the Work Begins appeared first on OWNx.