Contrary to what most crypto pundits predicted for 2018, Bitcoin did not rally in the fourth quarter of 2018. Not only did it not touch its previous high of almost US$20,000 – it declined by more than 80% to about US$3,500. Funnily, the same pundits are now calling for Bitcoin to decline to US$1,000. Before we go any further, this is not another piece on trying to guess where Bitcoin’s price will be.
Rather, it will cover our opinion on where the crypto businesses will be. Here’s our take.
Use cases improve, dAPPs become more common
Let’s face it. In 2017, a simple whitepaper with a line-up of anyone who resembles professionals would easily help you raise millions of dollars from ICO. However, now that we’re coming towards the end of 2018 – having a whitepaper, with an impressive line-up of advisors is not enough. Having an MVP too, doesn’t cut it. Infact, investors won’t buy your ICO if you don’t have a clear route to monetization. Even venture capitalists (VCs) won’t be going anywhere near you. That’s how fast the game has changed!
It is quite clear, therefore that 2019 would be a year that defines many multi-million dollar ICO projects – whether they are just plain scams or gold. As the cryptocurrency market found its bottom recently, projects have been busy building, and increasingly, it seems that dApps or “Decentralized Applications” are picking up traction. Though we might argue that they are only marketed as decentralized, which they aren’t, yet.
Major communication app companies such as LINE have invested heavily into development of dApps where (according to our sources) they current house more than 30 developers, and collaborate cross-company with a few hundred more. No doubt, these apps are not comparable to super apps out there in the market today, but we think it is a good sign of things to come.
More mainstream businesses (even governments) accepting crypto
Coinsauce also forsees that as more and more governments and state governments get broke, they will do anything to tax or benefit from the rise of cryptocurrencies. The best example to date is still Venezuela, where they launched the state-sponsored cryptocurrency named Petro. They even went as far as to promote its usage to their trading partners.
Another development would be that recently the Ohio state government in the United States confirmed that they accept Bitcoin for tax payments. Interestingly, this also inevitably puts a nail in the coffin for the US Dollar, as citizens can now choose to pay by something which is non-dollar denominated.
As such, we think that this might be the catalyst that’s needed to make Bitcoin more mainstream globally, and will see a growth in acceptance across all industries looking to survive the current economic downturn that’s spreading across the world.
More services built around the crypto industry
For nearly a decade in bitcoin’s existence – it has been demonized continuously by various economists and experts. Fortunately, it also found itself many loyal fans who begin to not only mine, but trade it amongst themselves. Lo and behold, it turned into a gargantuan industry by itself.
Before bitcoin, who would have imagined that the cryptocurrency mining industry would be worth billions – as demonstrated by Bitmain’s multi-billion dollar valuation. It could command such valuation because it was the biggest in the space. We would argue that this is just the start. The industry has only started, and will expand into every industry imaginable, making them possibly obsolete.
Come to think about it, skillsets that were before regarded as hobbyist in nature have come into high demand. For example, if you knew how to fork a coin, or work on blockchain related project, you could easily be paid as high as Wall Street bankers. Think we’re lying? No, we’re not.
2019 and beyond
Have you ever considered the fact that when computers were invented, the internet was still a pipe dream? Even when emails and the internet started to become more popular, some pundits even said that the “internet” was just another fad. Infact, it wasn’t a fad. The internet had today become as important as the invention of computers.
Does this sound familiar, thinking about what “pundits” say about bitcoin and cryptocurrencies?
We know that blockchain and cryptocurrencies will one day be an even more powerful invention, and it will be something that permeates every facet of the world and its industries. If the invention of the personal computer brought productivity, and the internet brought accessibility of information; blockchain and cryptocurrencies will bring freedom, including freedom to conduct commerce safely, privately and cheaply. What do you think?
Cover photo by: nulltx