15 May The Cryptocurrency revolution has begun
Media power has always been capable of changing or conditioning the perception of a certain concept, and today this is happening to cryptocurrencies as well.
The media or influencers are more interested in talking about this concept in a destructive and non-constructive way, pointing their finger at what it is and not what it could be.
I believe that every project needs to go through various phases of evolution, failures, downfalls and successes before actually creating true global change. Fortunately, there are visionary people, capable of seeing beyond preconceptions and calumnies, who have learned to get up when they fall because in their mind what counts is the final result: they fight to win the war, leaving individual battles to those who are content with an ephemeral success.
Let’s go back to today’s topic.
Are cryptocurrencies also used for illicit purposes? They certainly are.
Are cryptocurrencies a scam? I believe quite a few are.
Yet there is undeniable potential that could lead to a revolution in the monetary system and payments. They will surely not be the cryptocurrencies as we know them today; we will need to regulate their use, create transparency avoiding any grey areas, simplify their use and spread a social culture.
These are all phases, more or less long, but with a common thread: acceptance by a growing number of users.
Unfortunately, there’s a very strong antagonist in all this called “resistance to change“.
The resistance to change is that which compares the Dutch Tulip Bubble to the market trend in cryptocurrencies. At the end of the 1500s, the Netherlands began to cultivate tulips and this good quickly became a luxury commodity as well as a status symbol; tulip prices rose due to speculation on future tulips produced by those who had never seen bulbs. Since inflated prices could no longer be accepted (we’re talking about land, houses, properties, etc.), at the end of 1637 the tulip producers began to sell in bulk: it was thought that the demand for tulips could no longer keep up with the same market levels and this created panic, thus bursting the bubble.
This doesn’t mean that there may not be a speculative bubble in the cryptocurrency market; it just means that those who make a similar comparison should sell flowers and not talk about finance.
I’d like to remind everyone about the Information Technology market speculative bubble – IT – at the beginning of the century: the period between 1997 and 2000 when the capitalizations of the stock markets saw a rapid increase in the value of companies that were active in the IT and Internet market; small and scarcely capitalized companies, very exposed in an overestimated sector.
Many invested believing in technological progress, ignoring all the market’s signals. These companies only thought of growing fast, ignoring budgets and returns, driven by the “get big fast” motto; thus exposing themselves to unsustainable situations while helping to burst the bubble.
This context created considerable damage and led to the loss of many jobs. At the same time, however, it brought a wave of cleanliness, skimming the market and, later, the IT market restarted once again with even greater vigor than previously. As a glaring example, it’s worth recalling Amazon, whose shares went down from $ 107 to $ 7 when the bubble burst, yet during the next decade they exceeded $ 950. As mentioned, these are evolutionary phases which form part of any project.
Evolutionary phases are the only way to fight resistance to change. If a project is strong enough to change, evolve and survive an evolutionary phase it will come out reinforced because, despite the obstacles it has had to overcome, it will still be standing and there is no better way to change a person’s way of thinking if not proving that once the bottom has been touched, it is still able to re-emerge through its own strength.
Even the cryptocurrencies market’s volatility serves this purpose. Whenever there’s a downfall, the market tests the bottom where to start again and re-emerge. Perhaps it’s because it’s looking for its identity and stability; perhaps it is still too young to be safe and since it was born recently it is also easily manipulated. Yet every time it emerges it grows, it gets stronger; this increases the number of people who change their way of thinking, which inevitably leads to increased stability.
It will be a long process, complicated and with many downfalls… But that’s how it must be. And if all of this is still up and running and most people have been brought to the “postive side of the force”, well then we’ll see a new global revolution.