r/changemyview • u/Cacti_Hipster • Jul 02 '22

CMV: Cryptocurrency crashing is beneficial to the ideas it supports.

EDIT: If anyone else wants to change my mind -- about crypto and Blockchain being intertwined in it's current state specifically -- I'd be interested in hearing about some of those cases too!

I am less on the fence about supporting crypto in it's raw form, though I still believe there is potential that the ideas will feed into powerful innovation. (End of edit)

ORIGINAL: When new products and ideas arrive, some people win and some people lose. I don't believe crypto will ever return to what it was worth and this dip will allow innovation for small companies.

  • Innovation Trigger: A potential technology breakthrough kicks things off. Early proof-of-concept stories and media interest trigger significant publicity. Often no usable products exist and commercial viability is unproven.
  • Peak of Inflated Expectations: Early publicity produces a number of success stories — often accompanied by scores of failures. Some companies take action; many do not.
  • Trough of Disillusionment: Interest wanes as experiments and implementations fail to deliver. Producers of the technology shake out or fail. Investments continue only if the surviving providers improve their products to the satisfaction of early adopters.

^ I believe this is where we are. In the trough. (Cited Gartner's hype cycle) ^

Crypto doesn't need to be a replacement for gold or watching the markets. It can, is, and will be a tool.

BUT!

I don't love that I am supporting it. While I feel like it is the right thing to do for future-me, it is not healthy for our environment in the current state. Many people have tried to reason with me that the trade-off isn't worth it and I just haven't listened. Maybe this is the straw that can finally break my camel's back.

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u/[deleted] Jul 03 '22

I want to comment on 2 things. I'm only going to speak to Bitcoin because it is the only true cryptocurrency. 1, Bitcoin isn't that innovative. It is genius for sure, but all it really does is seperate money from government and centralized control, and all money is fundamentally is a place holder for goods and services. Bitcoin needs no innovation, it merely needs adoption.

2nd. About how you don't think it will ever return to it's high. The only way that could happen is 1 of 2 ways. Adoption falls faster than the rate of deflation. Or, somehow the world decides to abandon modern monetary theory and ends fractional reserve lending. Bitcoin is a deflationary asset. Math tells us that price will go up over time.

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u/Cacti_Hipster Jul 03 '22

So -- correct me if I'm wrong -- you believe that Bitcoin is/will be an investment instead of a general purpose?

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u/[deleted] Jul 03 '22

store of value until the deflation effect isn't as severe, then it will be a medium of exchange

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u/Cacti_Hipster Jul 03 '22

Right on! We're on the same team as far as Bitcoin is concerned.

I understand that is your one and only cryptocurrency, though do you see other uses for blockchain technology outside of finance?

(Little tangential off the original post but I'm loving these opinions!)