The crypto hype was overwhelming last year. We speak of absurdly high trading volumes, coins that rose by 800% in value and product manufacturers who were no longer able to meet the enormous demand.
At the same time, a dangerous gold rush sentiment penetrated the market. Millions of ignorant investors suddenly craved their own piece of the pie. Many invested with totally unrealistic expectations in dubious and often fraudulent 'cryptocoins'. There was often no question of interesting projects. Marketers with a very shrewd business instinct were just responding to our capitalist minds.
The ever-new all-time highs also received enormous media attention. That this non-stop party mood would eventually lead to a gigantic hangover was predictable. But much needed.
Market adjustment and professionalization urgently needed
The fierce price corrections of the past few months creates an externally boring phase in the crypto market, which is however extremely important for the continued prosperity of this still young market. Trading platforms can now finally expand their infrastructure, adapt their security architecture and focus on the future. The countless ICOs that have raised money in the past year can and must ultimately achieve visible results from the capital entrusted to them.
At the same time, with these many price corrections and the falling euphoria, the market is really starting to act up. Coins that only sell air and have no other technological substance than marketing are eliminated from the market at this stage.
Vitalik Buterin, the co-founder of Ethereum, also believes that the growth of the crypto market due to marketing is close to hitting a dead end. He says it is unlikely that the market will again show such explosive growth as during the last months of 2017. Many people are now familiar with blockchain and digital currency, which means that crypto doesn’t have the surprise effect any longer, as was the case last year. In other words, the aforementioned "gold rush" is over.
During a conference in Hong Kong, Buterin said to Bloomberg that there isn’t an opportunity for yet another 1,000-times growth in anything in the space anymore.
On the other hand, the blockchain community is in a new stage of growth based on real applications, developed by real people instead of recruiting new, unknown enthusiasts who would like to invest in crypto.
Blockchain applications
It is now the task of the blockchain ecosystem to make the crypto enthusiasts also actual users of blockchain applications in their daily lives.
Further professionalization of the infrastructure, the first tangible applications and a screening of dubious actors - all this forms the basis for cryptocurrencies that find their way to society and our economy in the medium term. This is indeed happening, and at a fast pace.
I have the idea that there are hardly any companies that do not investigate in their Innovation Lab how blockchain technology can be used for their own business purposes. The old industry and the crypto-startups have clearly found each other. Especially in connection with the internet of things, which is becoming increasingly important for the economy, blockchain technology offers a wealth of possibilities to optimize business.
In addition, the banking sector is intensively engaged in cryptocurrencies and, for example, it uses the Ripple crypto currency to process internal cash flows more efficiently.
Admit it, this sounds more promising that the umpteenth coin that shouts that they go to the moon.