Bitcoin’s Broken (But There’s a Way to Fix It)
Crypto and blockchain are plagued with problems.
These problems range from theft and security issues to misrepresented transaction speeds and a lack of equitable governance.
It’s why tokens are so volatile.
You need to look no further than bitcoin’s chart over the past six months as an example:
BTC’s last run-up in late July saw the token almost reach $8,500.
Rumors the SEC was going to approve a cryptocurrency ETF fueled the surge.
Can you believe it?
BTC owners are buying in on the idea of a more regulated way to play crypto.
The Crypto Space NEEDS Institutionalization
We said it before… Institutionalized, or corporate, blockchain/crypto is the future for the space. But a lot of folks are still resistant to the idea.
Crypto purists claim institutional blockchain spits in the face of the core principles bitcoin and its blockchain were established on. Those principles being anonymity and decentralization.
But these two core ideas are why blockchain is still not globally scalable. And why the tokens are suffering in value. That’s not hyperbole, either.
Here’s a snapshot of the 10 most valuable tokens by market cap today. That’s a lot of red.
Crypto’s downward price action shows us institutional blockchain is what people want, whether they admit it or not.
Think of it like this…
Today’s blockchain networks require a leap of faith. Participants have to believe in the trustworthiness of random anonymous users.
Therein lies the problem.
For blockchain to see global adoption, it needs trustworthy resources managing a transparent network.
The SEC, Goldman Sachs or any other large organization isn’t going to rely on random techies with supercomputers to verify multimillion-dollar client transactions.
Institutional blockchain is what the crypto space needs to move forward. Whether you like it or not.
And the proof for this is in crypto’s price action, tied to the corresponding news.
What happened when the SEC decided to postpone its decision on the crypto ETF?
According to CNBC, a sell-off initiated and over $9 billion was wiped from BTC’s market cap alone.
The writing’s on the wall, folks.
Institutionalized blockchain, with crypto supported on better regulated networks, is the only way forward.
The good news is we are closer to this realization than ever before.
According to CoinDesk this morning, 90 companies are joining IBM and Maersk to finish development on their global blockchain supply chain.
The report states: “The companies have already signed up more than 90 firms for the platform since it was spun off from Maersk in January. They have also finally given it a name: TradeLens.”
CoinDesk further reports: “The venture has attracted a wide variety of entities, ranging from dozens of port operators and customs authorities to logistics companies and even rival oceangoing carriers.”
If big industry sees the value in institutional blockchain, it’s time the general public does as well.
But this news impacts supply chains and logistic operations, not cryptos, right?
Not exactly. Institutional blockchain like TradeLens works as a perfect proof of concept for other uses, specifically in fintech and in crypto transactions. It also opens up the door for consumers to use crypto like cash… at the store.
This is a seminal moment for the space.
A better established, well-regulated version of blockchain will help eliminate problems with governance, scalability, speed and criminality.
And that’s when, and only then when, cryptos like BTC will finally find their true value.
It’s the only way the crypto space will live to fight another day.
For Technology Profits Daily,
Chief Technology Expert, Technology Profits Daily