The Struggles of Crypto-Companies
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As in all things, there are problems that face those who try to introduce innovative ideas for the benefit of all; their efforts are best described as swimming upstream. Be it an artist or an entertainer, there’s always going to be resistance in life in every way you go. Therefore, it’s not much of a shock when you look at the problems that industries, especially those fresh out of the oven, including our own dear cryptocurrency industry. These problems may even be shared by other industries in unrelated sectors, or even famous people we may have heard or read about in our daily lives.
However, the most important and troublesome problems are those which are specific to the industry, because they are faced by only that industry (or person) and need a unique solution. You can’t solve put a square peg in a round hole, right? So, you can’t apply the solutions for one industry to another, without needing to tailor it a bit to fit the situation.
So, let’s look at the many problems the cryptocurrency sector has faced, will face and is facing, and wherever possible, we will discuss solutions to these issues, staying, of course, within the realms of reason.
From the genesis of cryptocurrency, the very moment the idea was conceived, opposition to the concept began. The day it became a real, practionable idea, cynicism hailed it as unlikely. The day cryptocurrency gained the power to lift its head up and declare its purposes to the world, propaganda spewed forth from the tongues of all those who know little of this beautiful concept and would like to know less.
This didn’t stop cryptocurrency from growing, nay, thriving, in the first few years of its growth, and it never will. Why have we then made it the first problem to discuss?
Because Public Opinion has a positive correlation to how fast the growth rate of an industry or idea gathers speed.
In simpler terms, if people like an idea, the idea generally comes to fruition sooner and with better results. Even to this day, while cryptocurrency has come far, and is still going at full steam, doubters and cynics spread rumors and misinformed opinions about the crypto world. It isn’t uncommon to hear a confident prediction that the whole field will ‘come to nothing’, a blunt disregard to the various successes and progresses made by the industry in the last decade alone.
If cryptocurrency has come far (and it has), it has done so against the tide of public disapproval and has pushed on despite it, not because of it. While it is true that many companies have announced their support of cryptocurrency (Ethereum itself having been launched by a coalition of corporate sponsors including Microsoft, Toyota Research Institute, Samsung SDS and Intel, these companies do not amount to much in the way of popular opinion. All they do represent is the fact that the blockchain is a stable and potentially profitable technology, and that the misconceptions surrounding it are baseless.
Awareness programmes and public education seminars should be held to make people understand what exactly they’re talking about, and the real take of things, not just what they’ve heard from others. Advertisements and publicity might also do a lot to improve the situation. Media spokespersons and economists on social media could play a role in helping dissolve the falsehoods surrounding cryptocurrency.
Another problem that has heckled crypto users from the get-go is the inconsistent variation in the prices of crypto coins. It bothers us now, and it bothered us then. I’ve had friends who cashed out on their crypto coins to find their value had skyrocketed the next day. I know people who bought crypto coins that plummeted to rock bottom moments afterwards. And I know a lot of people who would never take the risk and buy crypto coins at all for this reason.
We take risks all day. Life in the twenty-first century requires it. From buying a house to an expensive phone, there is always a chance that everything will go wrong eventually.
From a company’s standpoint, this fluctuation in value can cause serious problems too. When people become disinterested in buying stock or investing in a particular company, that company loses value and is adversely affected. Of course, the consumers are hurt too, but their losses are just fractions of what a company loses.
The uncertainty in the price of Bitcoin has given naysayers the opportunity to extrapolate the data onto all the crypto world, and while this might be a little unfair, it’s not without reason. So, the instability of crypto coin value might be a double-edged sword, allowing for rapid gains, and equally rapid losses.
The efforts of companies like Amon to reduce the instability of cryptocurrency prices should be applauded and supported wholeheartedly. Amon is trying to reduce the instability in the cryptocurrency market by use of its great A.I.; if you would like to read more about that click here.
Let me tell you the sad story of Mt. Gox., the cryptocurrency company that went bankrupt in 2014. In its last year, it came to handle upto 70% of all Bitcoin transactions in the world. And it all came crashing down around everyone’s heads because hackers managed to steal about 850,000 Bitcoins, around 5427258500.00 U.S. dollars worth of Bitcoin, over several years.
While the blockchain is the most secure system for protecting your assets today, the companies that are involved are constantly at war with internet hackers. Even the biggest can get hit, as the unfortunate Mt. Gox incident shows, and they often get hit hard.
Develop better protocol, like Ethereum did to face hacking threats. Make more secure systems, and work hard to remove hackers from within the community.
Of course, no system is perfect, and the cryptocurrency industry will always have problems. However, the magnitude of these problems pales in comparison of the innovative minds that are the driving force behind the great technology system. In conclusion, as long as the crypto-world stays true to the founding principles, it will continue to rise to new heights.
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