Cryptocurrency Development in Its Fourth PhaseDavid Kemp
Many reports claim that crypto keeps growing. However, some critics disagree and have their reasons. The crypto world is more than ten years old. It offers more than five thousand cryptocurrencies. At the moment, crypto has entered its fourth stage of development. The previous phases were quite productive and significant – they have reshaped the entire market and made it different from what it as a few years ago.
The market has a chaotic nature and each of its cycles was rougher than expected. Each phase starts with a distinct rise in BTC price. This, in turn, stimulates further interest in crypto. As a result, new startups and ideas emerge.
The question is how successful those cryptocurrencies are and whether they met the expectations of end-customers. Some believe that cryptos are useless and their major role is that of speculative investment.
It is too early to criticize and we need some time to see how effective crypto is. At the moment, the market is trying to solve issues related to scalability. Not less important is decentralization. Finally, all know how the industry is trying to make security measures more reliable.
Summing up the Previous Phases
Experts report that the first cycle lasted between 2009 and 2012. Back then there were fewer people dealing with exchanges. Only the most advanced ones knew what mining pools are. Some found Bitcoin quite an elegant way of resolving double-spend issues. Crypto didn’t need any central body to transfer funds, which attracted even more users. The creators knew their project needs further growth. They tried to strengthen their software.
The second phase started in 2012 and lasted for another four years. Crypto covered a wider tech area. There was the so-called Silk Road – the darknet marketplace which had to close. Bitcoin received several offers to collaborate with illegal stores on the net. This period is special because this is when we first found out about altcoin projects.
The third phase lasted for three years and finished in 2019. During this stage the crypto space expanded. It was widely used in spheres that are linked to decentralized finance as well as decentralized applications.
Actual Value and Its Creation
When BTC was still something new, blockchain technology and crypto could not boast stability. They were considered disruptive. Most businesses trusted only centralized infrastructure. More than that, many people think that crypto is not worth people’s time, attention, or investments. Critics say that cryptocurrencies do not create any value and end-users should stop believing that BTC or any other cryptocurrency may make them rich.
Fortunately, there is evidence that BTC is helpful in cross-border transfers. You can transfer money around the globe and the process takes mere minutes while banks would need days to process the request. They also charge greater fees.
Bitcoin is an asset whose performance has been excellent in the past ten years. The crypto keeps gaining popularity and the percentage of people interested in the opportunities offered by the crypto market has also increased. At the same time, analysts who see no sufficient scalability will always warn people against crypto. They concentrate on the monetary aspects of cryptocurrencies calling it ‘stateless’ money.
What bothers the market is security – specialists agree that it should be right. New technologies aimed at market surveillance would protect them and then it would be possible for the world’s population to utilize crypto in everyday life.
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