Blockchain applications have gathered a global outreach and are now part of a much larger eco-system than it was ever envisaged. With this multitude in growth, has come great awareness and maturity among the consumers. This notion is best carried with the prime application of blockchain, i.e cryptocurrencies.
This sentiment has been echoed by none other than Vitalik Buterin, the co-creator of Ethereum. He believes that the days of turning a few bucks into millions of dollars worth of cryptocurrency are over, saying that “the days of 1000x growth”, as witnessed at the end of 2017 in the cryptocurrency sector, are gone.
He emphasized the role played by general awareness about blockchain (more specifically cryptocurrencies) that has caused much more stagnancy in the market as well as development. Buterin also claimed that the crypto space had seen its ”high point” in December 2017, as the largest cryptocurrency; the Bitcoin soared to be valued at around $19,000 while other major cryptocurrencies like Ethereum, Ripple and Bitcoin Cash boasted 10 to 300-fold returns.
He said while talking to Bloomberg:
The blockchain space is getting to the point where there’s a ceiling in sight. If you talk to the average educated person at this point, they probably have heard of blockchain at least once. There isn’t an opportunity for yet another 1,000-times growth in anything in the space anymore.
Into the aftermath of the ‘High Point’
The speculative boom of 2017 has had drastic effect on the market as a whole, as a whole new class of community has become involved in the space since then. It is now considered as “the emerging asset class” and many tout for it to one day replace fiat money, which is seen as its eventual destination.
According to Buterin, the industry should now focus more on improving stability and accessibility of decentralized portfolios and applications rather than promotions. He suggested that the promotional strategies might come to hit a dead end soon and that is is imperative to improve the dApps and protocols that will simplify the whole thing for the users that commit to blockchain platforms.
Go from just people being interested to real applications of real economic activity, that strategy [promoting the blockchain to the broader consumer base] is getting close to hitting a dead end.
Surely, in the coming times, to reach true mainstream adoption and to help the existing eco-system, developers of decentralized platforms must be able to ensure the utilization of systems is seamless and efficient as centralized platforms.
For instance, in apps like Peepeth, there might be a drawback faced by users to sending Ether or gas every time a piece of information is to be broadcasted to the Ethereum network. This scalability issue, inherent in many other blockchain applications, should be made the forefront of solutions sought for by developers and consumers alike, if the crypto space is to reach its true potential.