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For Bitcoin to Become a Revolution, it Needs its ‘Dot Com Crash’ Moment

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    Whenever there is a crash, panic ensues from those who probably should not be involved in Bitcoin to begin with.

For Bitcoin to Become a Revolution, it Needs its ‘Dot Com Crash’ Moment
Cover image via u.today

In the dotcom era we watched a promising, but undeveloped, unregulated and open technology called “the internet” result in massive exuberance, fraud and an epic bull run, that was immediately followed by a complete collapse and loss of wealth." February 6, 2018 https://twitter.com/Jason/status/960775425113841664

This tweet sums up my thoughts precisely. Blockchain technology, cryptocurrency, digital tokens, even ICOs and their disruption of the VC market, these are all waves of new technology that have the power to change the way we exist on this planet.

However, Bitcoin and its affiliates, are in their embryonic stages, although quickly evolving, and while people get to grips with the technology behind them, there is this phase of early adoption that is giving a big pay off.

The issue is that people who are uninterested in the whole picture are honing in on the payoff, they are looking at Bitcoin with dollar signs in their eyes and ignoring everything else.

This is leading to some stupid decisions being made, and the shaping of the ecosystem is getting skewed towards these money grabbers. The foundation of the crypto community is starting to be built upon a massive and shaky base of speculative investors.

On the one hand, this has fueled the growth of the Bitcoin market, but the tower which has been built can come crashing down. And on the other hand, that crash could be the best thing for this technology.

Back the tech, not the currency

Now, I am not saying, like many other big banks and centralized systems that Blockchain is the answer and it should be separated from the digital tokens. What I am saying though is people who are entering the crypto community need to be appreciative of the technology and the potential it has to be a disruptive force.

Way back when the white paper was written, their foundations were there for a technology that could change the face of finance, the banking system and the hegemony that was held by centralized money systems.

That message has been diluted as not only the Bitcoin community pushed the digital coin away from its primary function, they have pushed it to be a store of value, which is a move motivated by greed.

Shake out the weak and damaging hands

There need to be a few big changes in Bitcoin for it to get back on track and to be able to match the Internet as a force for change going forward. One of those is that it needs to sort out its scaling issue, in order to move towards being a functional currency, but it also needs to shake off some of the deadweight.

The run up to it's all-time-high was epitomized by a wave of true mainstream adoption. The word Bitcoin was on the lips of cab drivers, hairdressers, doctors and garbage men alike; everyone wanted to know what this magical growing asset was all about.

However, it was less about educating themselves than finding out a way to double an investment in a few days. They bought in, with ease thanks to cryptocurrencies all-inclusive nature, but did not understand what they were buying into, moving more in a speculative direction.

A falling knife

When Bitcoin bucked recently, changing direction sharply in a downward spiral, those speculators were well shaken up, and a mass evacuation occurred which helped the knife fall further and faster.

However, this is not necessarily a bad thing. Those who screamed bubble as they exited sharply were never in it for the right reasons. Those who merely shrugged and rode the lightning, making no moves to exit are now the ones who remain and the ones that will build Bitcoin to be a force in the coming years.

Thank god for the Dot Com burst

It is funny to think that in the Dot Com bubble burst people were declaring this ‘Internet thing’ a scam and a fraud, and celebrating its demise and supposed death. However, it was the speculators and get-rich-quicksters that were merely making room for those who saw the promise.

Bitcoin has shook a lot of the first from its base, but it could still do with another big Dot Com level pop in order for it to grow its full potential.

 

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About the author

Darryn Pollock is an award winning  journalist from Durban, South Africa. He picked up Vodacom’s Regional Sports Journalist Award in 2017 while expanding his Blockchain and cryptocurrency reach.  He is a contributor to Forbes, Cointelegraph, Binary District, and of course, U.Today. Darryn’s belief is that Blockchain technology will be the driving force of the next technological wave and it is the obligation of journalists and writers to tell its emerging story with integrity and pride.

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Bitcoin Price to Hit $250,000 Due to Lightning Network Use by 2023: Tim Draper

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    World-famous investor and Bitcoin bull Tim Draper explains what reasons will push Bitcoin price to $250,000 by 2023

Bitcoin Price to Hit $250,000 Due to Lightning Network Use by 2023: Tim Draper
Cover image via en.wikipedia.org

Disclaimer: The opinion expressed here is not investment advice – it is provided for informational purposes only. It does not necessarily reflect the opinion of U.Today. Every investment and all trading involves risk, so you should always perform your own research prior to making decisions. We do not recommend investing money you cannot afford to lose.

While speaking to the audience at the Malta AI & Blockchain Summit last week, the billionaire and prominent Bitcoin supporter Tim Draper confirmed his previous forecast for the BTC price hitting $250,000 in the near future.

This time he explained that this high price per one BTC will be achieved through the growing use of the Lightning Network and explained how it will happen from his point of view.

Bitcoin still to hit $250,000

The Bitcoin permabull Tim Draper again stated that the Bitcoin price is going to hit $250,000 by 2022-2023. He said this will happen due to the growing use of the Lightning network which allows conducting payments in BTC easily.

Being a major global investor, he nevertheless shares the opinion of many crypto enthusiasts that BTC is not only a store of value but it can also be used to pay for things in everyday life – micropayments, the retail sector, etc, i.e. is perfect for adoption.

Previously, Tim Draper stated that his forecast of BTC reaching $250,000 was actually a quite conservative prediction.

Will Bitcoin get to be worth $1 mln?

As reported earlier on Wednesday by U.Today, the crypto asset manager and a trader Marius Landman tweeted that before Bitcoin hits $1 mln, it is bound to go through ‘super hyper inflation’, in which price drops by $20,000 will be considered insignificant.

He also expects Bitcoin and Litecoin to show ‘subito motus’ (Latin for ‘sudden movements’) soon, saying that this will leave uninformed investors and technical analysts at a loss.

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Bitcoin Price Hits $10,000 on Obscure Cryptocurrency Exchange

Smaller bullish BTC forecasts

Other traders and analysts seem to think more vaguely when they are looking at technical analysis graphs. They are bullish, nevertheless.

The @crypto_rand trader with over 216,000 followers on Twitter simply posts a chart, saying that Bitcoin ‘still looks bullish’.

Another analyst and trader PlanB has published a chart of the way the changes in the Bitcoin mining difficulty have impacted the BTC price. People in the comment thread agree that this data at the moment is bullish for the Bitcoin price.

At press-time, Bitcoin is sitting at $8,823.

BTC price CMC
Image via CoinMarketCap

 

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About the author

Yuri is a journalist interested in technology and technical innovations. He has been in crypto since 2017. Believes that blockchain and cryptocurrencies have a potential to transform the world in the future. ‘Hodls’ cryptocurrencies. Has written for several crypto media. Currently is a news writer at U.Today.

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