How Cryptocurrencies Can Succeed

[dnprock]

Crypto space is flooded with projects. It's hard to know which one has potential. I think the key is specialization. Hopefully, the next generation of altcoins will be more successful.

Full post on our blog: https://bitflate.org/post/2019/08/09/how-cryptocurrencies-can-succeed.html

Elusive crypto revolution

Ten years after the Bitcoin white paper introduction, cryptocurrencies have not gone mainstream. Crypto aficionados remain bullish that Bitcoin will take over the world financial system. They enforce their views on the world, remain a stubborn minority. They hope that their stubbornness will eventually prevail.

Lindy effect says that life expectancy of something is its current age. Perhaps, there is a non-Lindy effect: the expected occurrence of something is, at least, now plus its current waiting time. If we’ve been waiting for 2000 years for judgement day, its expected occurrence is, at least, year 4000.

Bitcoin has been a Store of Value for the past ten years. Lindy effect implies that it will remain as a Store of Value. It will never become a token for transactions. We need to accept this and develop new thinking to increase adoption of cryptocurrencies. Bitcoin as a Store of Value is a success. It hints an important attribute for success: specialization.

Cryptos are solutions looking for problems

Since the invention of paper money, we’ve developed payment systems that work well. Cryptocurrencies are strange inventions that really don’t solve any problem with the existing systems. They are ideas, solutions looking for problems. Economist and crypto skeptic, Paul Krugman, highlighted the problem:

"In other words, cryptocurrency enthusiasts are effectively celebrating the use of cutting-edge technology to set the monetary system back 300 years. Why would you want to do that? What problem does it solve? I have yet to see a clear answer to that question."

Cryptos are kinda like arts

Crypto critics often view cryptos through the lense of logic and science. Cryptocurrencies often don’t solve any particular inefficiencies. They exist because we like to create them. For example, Bitcoin was created to enable us send money without relying on a mint authority. Cryptos represent some ideas, philosophies, inventions that we want to make. Maybe some techniques in crypto space can be transformed later to solve real world problems. But they don’t have to be. They exist for intellectual curiosity.

Successful cryptos solve specific problems

I view cryptos as arts. But some of them can make impact on real world. I believe the most important factor for success is specialization. Cryptocurrencies can become successful if they solve specific problems.

Bitcoin is successful because it serves only as a Store of Value. Some people believe that Bitcoin will take over the financial system. If Bitcoin wants to continue its success, it needs to remain as a Store of Value. Bitcoin Core developer, Pieter Wuille, highlighted in a tweet.

https://twitter.com/pwuille/status/1157339432753565702

"As far as tokens goes… for now, Bitcoin’s security depends on its exchange rate (because the subsidy is expressed in BTC). Using the chain for activities that only benefit unrelated assets in a way to competes with its use for BTC is in conflict with security and survival."

Some good specialized coins I see currently: Bitcoin, Zcash, Monero, Dogecoin.

There are cryptocurrencies that want to be platforms: Ethereum, EOS. I think the challenge for them is insurmountable. Not only do they need to maintain their stack, they need to find specific problems to solve. The stack becomes too bloated. When someone wants to create a new cryptocurrency, it may be better to start from scratch than building on a bloated stack.

There’re 3 factors that decide a cryptocurrency success: specialization, specialization, specialization.

[nxnqauff]

There are lot more coming up. However this question is relevant at this point in time. Only top 20-30 coins will survive and rule the world.

[Findingnemo]

Only top 20-30 coins will survive and rule the world.

Which top coins you are talking about?

The list based on their marketcap values and trading volume?

That list contains coin like ripple and bitcoin cash it will also rule the world?

[dnprock]

There are lot more coming up. However this question is relevant at this point in time. Only top 20-30 coins will survive and rule the world.

I think at this moment, we know there's one type of coin that will survive: Store of Value. I think there are other types. Semi-centralized coins like Libra or XRP could be a type. I'm placing my bet on a coin with constant inflation. That's why I created Bitflate.

[Lanatsa]

Cryptos are solutions looking for problems

Primary thing why Bitcoin did succeed which it do solve out against centralization by going decentralized and the rest of the coins do seek out for another field to solve out.

Success cant be determined even how good the coin is,it will matter solely on support and if people will see it revolutionary and does contribute on people lives.

[bigcash2011]

Crypto for me is just on the holding phase due to global level rules and regulations being policised by major governments worldwide, as soon as crypto gets the green signal from majority of the world, it will become unstoppable and we will see mass adoption in no time and juat imagine the impact on its demand and price this scenario will create, i am a positive person so i see great things coming for cryto in coming months and years.

[key4co.in]

It's true that cryptocurrencies with specific use cases to solve real world problems are those that will succeed in the long run. We already have some coins which are able to solve real life problems but not yet gone mainstream because of restrictions and concerns placed on crypto. For instance NPXS by PUNDIX,  the XPOS works but not yet used in shopping malls etc. Also, TAEL (formerly WABI) solves counterfeit issues with the anticounterfeit scan app, but not yet applied to a large scale. DENT can be used to recharge and subscribe Sims but not yet adopted worldwide.  I can mention a couple of coins with good use cases but the issue remains diifficulty to be adopted mainstream.

[kawetsriyanto]

A good cryptocurrency should have certain criteria, some are what you have posted in this thread.
But, it also needs certain follow up by the developers and the team of the projects in order to maintain and increase the progress of the cryptocurrency in the market. That is why alive community and active teams will make the crypto group be increasing, moreover with the new updates, new progress, and also significant move to the forward. Of course, the real products of the cryptocurrency or platform swill be also very important to determine how precious the crypto will be in the future

[aji567]

cryptocurrency for me is said to be famous, the huge trading volume and buying and selling power that is still the interest of investors. one more thing is the function of crypto and its uniqueness.

[Tipstar]

Crypto itself is a vast word to explain different blockchain based technologies. And crypto would succeed in different sectors in different ways.
It's not that every of the crypto would succeed. Some might not have a place in the future. Maybe only a few of current crypto would be alive after a decade as new technology replaces the old.

[martychubbs]

I think cryptocurrency is still too young to become part of our lives. However, I think this may change in a few years.

[zuziekatee]

It’s good to know that majority of the cryptocurrency won’t survive ! Only a few that addresses to solve a real life problem will succeed and be widely used when massive adoption comes ! 

[killat]

Cryptocurrencies emerged as we all know as an alternative to avoid using banks. In this way we have to have some risk that in this case would be the value for me, which in this case is normally reflected in dollars.

Cryptocurrencies although we do not create them are methods that protect our privacy and allow us to create a solid financial system among what fits. But this that is constantly changing price without knowing what it is based on directly is something that leaves us metaphorically speaking "With the ass in the air"

[tycsols]

As soon as big enterprises announce their own crypto projects or even if they announce strategic investments into crypto space with global crypto approval from govts and authorities, we can rest assure that adoption and massive use case will become a reality and that is something compulsory for cryprocurrencies to succeed.

[goinmerry]

Only top 20-30 coins will survive and rule the world.

Which top coins you are talking about?

The list based on their marketcap values and trading volume?

That list contains coin like ripple and bitcoin cash it will also rule the world?

No doubt, with or without a real use-case or something driven by hype, a certain coin will only succeed in the long run is by having and establishing a good trading volume. That's the preferences of others, good volume = healthy coin = can survive in the long.

Traders are the one who keeps a coin healthy and not by any coin's own specifications like using it as a currency, of course, it excludes Bitcoin.

[danggoron]

Too satirical. If they really don't like it or don't want a change, then just leave it. Every new thing must be controversial, there are always two opposing sides. I prefer to take advantage of the benefits offered.

[mirakal]

There are lot more coming up. However this question is relevant at this point in time. Only top 20-30 coins will survive and rule the world.

Lol, this is funny only 20-30 coins will survive, which coins you mention?? Based on coinmarketcap. In coinmarketcap top 20-30 coins always random nothing fixed except bitcoin. I think better before you make a funny statement like this you should learn more about crypto first

There's a lot more will survive but I'm sure it's higher than what he mentioned, the top 100 in the market are all good coins and tokens IMO, except those who have very less volume.

 It's just unfortunate that the market looks bad due to big scam in the past and that affects the reputation of crypto especially the altcoins that's why we are seeing that bitcoin has increase its dominance now since people still love to invest but they choose bitcoin which is more secured compared to altcoins, but eventually altcoins will mature and more projects created are legit due to the new platform of IEO.

[DoraNile]

The only way crypto can survive is through real use case and adoption, real use case should come first for every crypto coins because  this is the only way crypto can live for long,no real use case no long live,in time all coins with no real use case will be a waste and they will die off.
First Real Use Case
Secondly Adoption rate will follow