As we steamroll our way into the new year it comes as little surprise that crypto saw its peak and its fall in all in the 2018 year. Crypto in the last two years skyrocketed, I mean it literally strapped itself to one of SpaceX’s rockets and hit the launch button. Everything from gaming to actual banking currency was taking place. It felt like every other day I was watching ICO going live. Hell, I even participated in a few. “Not before doing my research of course!”
Like any market, when everyone is doing what’s trending it becomes heavily saturated. Now, this doesn’t mean you can’t be in successful in a saturated market, it just means it might take a little longer and require more work. Prime example, starting a YouTube channel, it’s the thing to do nowadays, but you still can start one and you can still make money.
In the case of Crypto, you are taking a new concept (for most) and expecting them to accept it like it’s no big deal. People are creatures of habit so asking them to start spending their money on something that can’t physically hold or obtain one day is unreasonable, to say the least. I would be willing to bet if you asked someone a year ago, what bitcoin was, they wouldn’t be able to tell you in detail. They might say something like, “i read about it, but don’t understand it” or “its a digital currency”. I’ll go a step further and bet that the majority of people that invested that were over the age of 35 only saw the money signs. What else would someone investing see? However, any seasoned investor would understand and research what they are throwing money at.
A consumer education period should have occurred as the general market was still new to the idea of digital currency. Companies were so focused on bringing in new investors, having consumers buy coins on a pre-ico, and getting people to share the news that they forgot to really educate them on what in the hell they were buying. Many companies would mention that they built an amazing and revolutionary (keyword/red flag) platform on using blockchain technology. Again, the market doesn’t understand blockchain, only those directly involved with it do. So now companies are left educating average everyday consumers with two things; 1. What makes their company, coin, and services special and unique, 2. Attempting to explain blockchain. It was this lack of education that really kept many people out of the game and ultimately led to the path we see today.
Crypto startups are dropping like flies. With the massive decline of bitcoin and interest in ICO’s, the fad as passed and the market has shown its true level of interest. Like always, the market is the ultimate test and it has spoken.
However, in saying all this, do I believe that there is a market? Absolutely!
Do I think that some of these crypto startups will make it? Yeah, I do. Those that are well funded and have serve a real market need.
The thing that we can’t forget though, is while the marketing might not understand all the hype around cryptocurrencies, the technology behind it (blockchain), is here to stay. Companies like Amazon, IBM, Microsoft and more are successfully using blockchain and run commercials explaining some of their uses. Blockchain, while newer (so-to-speak) most definitely has room for innovation and will continued to be tested as technology enhances over the years.
So in summary, if you partook in ICO’s or were wondering why the hype has dropped off the face of this earth, it’s because the market has spoken and the fad has passed. Consumers need to be educated in this new market in such a way that average people, not tech enthusiasts, can understand with ease. Once this occurs the crypto industry can give it another pass, but until then, a select numbers of startups will make it because they serve or provide a market need.
Have any thoughts? Agree or disagree?
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