Blockchain has begun disrupting the multibillion-dollar verticals including the international wire transfers, gold industry, and crowdfunding. But the new technologies like blockchain are criticized heavily. Yee Kok Siong discusses this in detail below.
Fad, Bubble, Monopoly
On their way to the summit, highly valuable techniques often experience relentless negativity. If there is high growth, it's matched with high volatility and higher expectations. This leads to hype cycles and periods of overvaluation. This happens until the technology is globally ubiquitous. Now the new criticism is about inescapable monopoly rather than about faddishness or lack of utility.
For instance, if we talk about social media and Facebook, the later despite pilling up to 500 million users in six years was considered as a bubble by the people in 2010. Further, it was assumed that this company would never live up to the outlandish valuation of $33 billion that people had placed on it. But till the year 2017 Facebook made $15 billion in net income. Hence such questions silently faded away whether social media or Facebook is overvalued.
Similar is the situation with Blockchain. Because of its deflationary mining schedule bitcoin was initially dismissed and it was declared that it would never work. But today bitcoin is worth many billions of dollars.
10x Advancements
In these multibillion-dollar sectors including gold industry, international wire transfers, and crowdfunding blockchain has provided quantifiable 10x improvements over the prior technologies. To be more specific bitcoin is better than gold. Money in large amounts can be transported quickly across the borders and it could be ten times faster than the equal amount of gold can be transferred.
If we talk about international wire transfers, Ethereum works 24/7 in all countries, and it settles in roughly 14 seconds. It is now reasonably known in the tech community, and it also allows instant generation of receiving addresses.
Within one year, ICO's have consummated, and there is token sales worth of $9 billion. This signifies that we have entered an entirely new age for crowdfunding.
Flaws are Flexible
Obstacles might be related to execution and distribution. The fundamental zero to one innovation in crowdfunding, international wire transfer, and gold industry is no longer in question. Yes, the 10X improvements may indeed exist, but there is a counterargument that everyone might not be able to avail them.
Over the next few years, Ethereum games, blockchain based social networks and marketplaces will likely prosper. It's important for us to remember that this is brand new technology, and ground braking technology that later becomes widely adapted can increase significantly.
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