No doubt cryptocurrency can do a lot of good for the world. It can provide third-world nations with the financial means necessary to care for their residents. It can give people who don’t have valid access to credit or appropriate monetary tools the chance to pay for goods and services, and it can revamp our digital banking system into something that is controlled strictly by the people who use it – not by outside parties or middle men.
Cryptocurrency Doesn’t Have All the Support It Needs
Unfortunately, as we’ve seen in the past, cryptocurrency can’t please everyone, and there’s always going to be some haters out there. In the recent string of disgust directed towards crypto, a new survey published by venture capital firm First Round suggests that cryptocurrency is the most “overhyped” trend for the year 2019.
The survey monitored responses from approximately 950 startup founders and employees. Each one was asked to name three completely overhyped trends, and cryptocurrency – sadly – wound up taking first place. The other two top spots were occupied by virtual reality and self-driving vehicles, respectively.
This is a real shame, especially when one considers the properties and goals of digital assets. While most are primarily used for speculative purposes, they were originally created as a means of giving less fortunate individuals a chance to pay for the items they would need to survive, though volatility has often gotten in the way of crypto’s development.
Price swings have prevented many stores from saying “yes” to crypto and accepting it as a method of payment. If you buy $50 worth of merchandise with bitcoin, but tomorrow the asset’s price goes down, you’ll still walk away with whatever it is you bought while the company that sold the items to you will lose out.
Many ventures aren’t willing to take a chance that profits could disappear overnight and have thus refused to allow crypto to be used for purchases.
But where many of the survey responders stood ground was on the idea that crypto was a bubble. Nearly 50 percent of those taking part explained that crypto was a purported bubble surrounding tech companies, while another 32 percent said that the bubble is “close to popping.” Thus, close to 80 percent don’t think there’s much to crypto’s hype.
Focusing Too Much on Price?
It may be that these individuals are only looking at prices, and thus have found reason to doubt digital assets. Bitcoin, for example, is currently trading for about $7,100 – considerably lower than it’s all-time high of nearly $20,000 in late 2017 – while many altcoins, i.e. Ethereum and bitcoin cash, have also stumbled along the way.
Respondents were further asked to state which industries they thought were the most “underhyped” this year. The arenas taking the top spots included agriculture tech, digital health and construction.