Imagine the world of cryptocurrencies like a new, uncharted planet, waiting to be explored.
Some folks are skeptics, seeing this planet as empty and purposeless, or even as a haven for greed.
Others, the optimists, view this planet as full of potential – a blank canvas where we can build a better financial system and a superior internet platform.
Early settlers on this new planet come from diverse backgrounds. There are explorers who are drawn to the frontier. Speculators, innovators, and researchers are excited about the new possibilities. And regular people, especially those who’ve been left behind in the traditional financial world.
The governance on this planet is still unclear. Some places on Earth forbid their residents from visiting, while others are trying to establish a foothold in this new world.
The history of speculation and wild price swings has created social taboos around this new planet, making many people wonder: what’s in store for the future?
Current speculation is just part of the process of establishing this new world. It’s like the gold rush of 1849 that transformed San Francisco from a small town into a major city and a hub of technological innovation. The current frenzy of speculation in the crypto world is attracting settlers and driving the development of the infrastructure needed to turn this barren planet into a thriving crypto civilization.
Why Crypto Matters
Building a new world is a big undertaking, but why is it worthwhile?
In places where existing systems fall short, a new ownership system is desperately needed. Crypto-based currencies like Bitcoin and Ethereum are used worldwide, especially in countries like Argentina, Turkey, and Ukraine.
Many skeptics wonder when the “killer apps” of crypto will emerge, but they’re already here. Cryptocurrencies offer secure, programmable, and open financial services. They’re a lifeline for people who lack access to traditional banking due to high fees or distrust in centralized systems.
Crypto isn’t just about money; it’s about creating a new, decentralized financial system that’s cheaper, more convenient, and more inclusive. Stablecoin payments are becoming more popular, loans are accessible through code, and even systemic risks can be reduced through global collateral tracking.
But why all the speculation? Is it really necessary? It turns out that speculation plays a crucial role in technological revolutions.
Speculation helps attract attention, investment, talent, infrastructure development, research, and adoption by major players. It’s part of the process that transforms innovative ideas into mainstream realities.
In the world of crypto, speculation is the first step toward digital ownership. It allows people to create rare assets and trade them. The early days of Bitcoin were full of excitement, experimentation, and trading. Now, more than a decade later, Bitcoin and other cryptocurrencies have moved from being speculative novelties to global financial assets.
The Dark Side of Crypto
While speculation is essential, it can also have negative aspects. Too much speculation can create noise in the market, making it difficult to distinguish valuable projects from scams.
Short-term speculation is a zero-sum game, where experienced traders can take advantage of newcomers. It’s not inherently wrong, but sometimes focusing on the long-term benefits everyone more.
There are also bad actors in the crypto world, including scammers and hackers. Some regulation or self-regulation may be necessary to protect newcomers.
Why It’s Taking So Long
Crypto is almost 15 years old, so why isn’t it mainstream yet?
Building consensus around crypto takes time. Technology can only develop at a certain pace. Adoption is a complex social process. However, it’s remarkable that we can already transact with millions of people using cryptocurrencies like Bitcoin and Ethereum.
In the end, crypto is more than just speculation. It’s a new way of thinking and building a better financial world. So, don’t be too quick to dismiss it. Explore this new world and see what substantial builders are creating and how real people are using it.