Blockchain is a novel technology that has undergone different stages of evolution over the past decade. Even Bitcoin, the most popular blockchain has seen its native token evolve from a medium of exchange to more of a store of value. This is according to the majority of cryptocurrency users who have taken into consideration the overall characteristics of Bitcoin.
The current state of the blockchain and cryptocurrency industry could easily suggest a reduced buzz about the technology, especially in comparison to the events of the last few years. Unless you are really interested in what is happening within the blockchain space, it is easy to assume that the technology is not fulfilling original expectations. Far from that, developments within the industry reveals signs of maturity and actual establishment of the technology.
What Killed The Hype About Blockchain?
According to blockchain and cryptocurrency analyst, Dimitri Jeangerard, it is just the hype about the technology that may have died down. He notes that the essence of blockchain remains, considering the amount of work that has gone into the industry. Jeangerard notes that the work accomplished in the blockchain industry during the last two years was huge, with the number of top companies using blockchain increasing day by day, hence there is more and more regulation.
The main reason identified by Jeangerard that killed the hype is because the industry went into a bear market immediately after a huge bull run. In his opinion, as soon as prices go up again, there is every likelihood that the hype will be back. “Cryptocurrencies are here to stay”, he says.
What is Happening To Facebook’s Libra?
Towards the end of 2019, Facebook announced its intention to launch its own native cryptocurrency, Libra. This cryptocurrency was intended to function as a stablecoin that will be used to facilitate transactions within the Facebook marketplace. This plan did not go down well with regulators, as we saw how some major governments of the world resisted such a move.
So far, there has not been any substantive statement communicating the abortion of the project, neither has Facebook shown in recent times whether it was continuing with project Libra or not. This particular project also seems to have diffused into the overall relative quietness of the blockchain ecosystem.
Jeangerard attributes the resistance experienced by Facebook to the establishment’s sheer power. On the predicaments of project Libra, he says;
Facebook is so powerful that it must face even more regulation than other projects. Therefore, it will take time before we see any substantive progress on the Libra project. Moreover, there was the fact that telegram gave up on TON. This shows how much regulators fear powerful companies jumping on the cryptocurrencies train
Another factor that could hurt the development of Libra as identified by Jeangerard is the fact that many cryptocurrency users do not respect Facebook. This has a lot to do with the highly centralized nature of the platform, especially how the company hasn’t shown so much respect to its users either. One of the points where cryptocurrencies users clash with Facebook is the extent of control that the owners have over data. Perhaps, a debate over Libra could also play a role in reintroducing the buzz across the blockchain ecosystem.
Bitcoin Remains The Epicenter of Cryptocurrencies
At the centre of blockchain and cryptocurrency evolution is the world’s pioneer cryptocurrency, Bitcoin. As mentioned above, Bitcoin has evolved over the years, with many users thinking that it has changed in nature. Jeangerard is of the opinion that things haven’t changed that much with Bitcoin. “I think that Bitcoin is still what it was meant to be, he says. “Albeit, it was the first cryptocurrency, with its pros and cons”.
He continues by likening Bitcoin to a dinosaur in the crypto space, however its importance to the entire industry cannot be underestimated. “Maybe it will just be a store of value in the future, a digital gold, ” says Jeangerard. “Way better than gold or any other asset, the value of Bitcoin resides in its code, its fixed supply and immutability.
Jeangerard also believes that we are at the beginning of a new two years uptrend for cryptocurrencies. He notes that a lot of projects endured the bear market quite well, but most of them will know a real bull run once Bitcoin breaches the 20k threshold again. According to him, most of the scams in the industry are dead already, only a few of them remain but the total inactivity of their developers should be a red flag for any serious investor.
Iyke Aru is a seasoned author and educator in the blockchain and cryptocurrency industry. He has been in the business of crypto content writing for many years with thousands of his articles across several platforms on the internet. Iyke is based in Nigeria where he stands out as one of the most informed and credible figures in the cryptocurrency industry. Outside blockchain and crypto, you will most likely catch Iyke playing or discussing football with friends and family.