Actually cryptocurrency has been in the space for twelve years and in this duration the industry became able to provide a pattern to the space. During this prolonged period, the crypto industry has been galvanized by new developments in the ecosystem and rising of crypto exchanges and initial coin offering craze occurred.
The first cryptocurrency exchange was opened in February 2010 after the launch of Bitcoin in January 2009. Then other exchanges started growing and it took eleven months to Bitcoin market for Bitcoin to obtain parity with the United States dollar. Then Ethereum unleashed its ERC-20token standard to the world which hastily evolved into the 2017/2018 ICO boom and the ICO craze was a memorable moment in the industry’s history. The price of bitcoin hit its peak price of $20,000 in December 2017 but the prices remained low from the beginning of 2018 and the perceived value of blockchain also went down along with majority of the tokens issued during boom. Reportedly, some projects were still active a mere five months after their token sales.
Crypto keeps going
The attempt of revolutionizing the crypto industry through the introduction of token have failed and as a result of the 2018 crash, blockchain became the victim of criticisms that blockchain is ‘’a solution in search of a problem.’’ But no criticism could stand in the way to the offering of crypto rather than the industry kept going at its goal.
Offering in supply chain
Blockchain appeared to have many things to offer in supply chain promising transparent proof of provenance from factory to end customer but reportedly 90% of blockchain-based supply chain projects were failing.
Gaming as an example of use case
Blockchain is adding real value in gaming, where assets are big business with the virtual goods market worth over $50 billion. These assets have no value without blockchain. Game developers and publishers are controlling the assets. Non-fungible are well-prepared to transmute the gaming sector enabling users to take full ownership of one-of-a-kind assets as pioneered by games like CryptoKitties.
Interest-earning accounts for cryptocurrency are opening up new avenues of passive income and one of the popular ways is lending that allows holders to deposit their funds on a loan platform so that other users can take a loan providing interest to the lender. Another way of generating return is staking offers where proof-of-stake blockchains allocates the equivalent of mining rewards to network participants. Risk is common here depending on the type of investment.
Store of value
Another use case of Bitcoin is as a store of value and it helps citizens to protect their wealth from the effects of hyperinflation. Political instability and global condition can affect on the appeal of cryptocurrencies as a store of value.
Some organizations are trying to eliminate the barriers of crypto space. In spite of above-mentioned facilities, crypto has a plenty of room for improvement. The technology is yet unfamiliar to many which are an issue too. Great challenges lie to the industry because of recent attacks on exchanges and scamming. Key players in the industry should work hard to augment the reputation of the industry.