Hello everybody, as you all know, I usually post cryptocurrency news here Monday-Friday so all of our Catenanites can get an ample dose of blockchain news and be aware of their surroundings in this ecosystem. Today, I want to have a discussion surrounding differences in opinions regarding where we're in this market. The year is 2021, and cryptocurrency has undoubtedly matured substantially since 2017, however, is it mature enough to sustain such price growth? That is a subjective question where we need objective answers. It is, without question, an inevitable truth that PayPal, Greyscale, Tesla, Coinshares, Microstrategy, Galaxy Digital Holdings, Square Inc and many more prove the point that cryptocurrency has matured substantially over the past four years. But the question is, is this maturity enough to decree that mass adoption is here?
Until fiat currency proves its uselessness, cryptocurrency will not prove its usefulness. What do I mean by this you ask? Let me ask all of you this, how many of you are actually here to hold your cryptocurrency and not cash back into fiat? Fiat, as inflationary as it is and over the course of centuries, has proven to be an unstable form of currency, it is still the worlds reserve currency and its hegemony is far from over. Why do I think this, because if there was such a upheaval, the world would be in a financial shamble, wars would commence and the most powerful nations would succumb to monetary degradation. Now, does cryptocurrency fix this, not yet to say the least. Cryptocurrency lacks three fundamental components that, without them, mainstream adoption will never occur.
The first is interoperability; ICON, Cosmos, Chainlink and Polkadot are all protocols that are looking to mend this roadblock to mass adoption. Cultures of blockchains cannot communicate with one another if they cannot connect with one another. Interoperability I believe will be the first problem that will be solved regarding the three fundamental components that are left before mainstream adoption. Scalability is the second issue; it is evident that many blockchain protocols are working on such a feat to achieve TPS speeds that rival their adversaries such as Visa and Mastercard and simultaneously, to prevent bottlenecks within their associated networks. One example of a successful blockchain that is achieving such a notion is Solana with a TPS of approximately 50,000 with extremely low fees. IOTA and Holochain are other blockchain alternatives that can achieve speeds that rival even the most comparable blockchains. Until scalability is rectified in absolutes, this market will not be mass adopted. The third component of mass adoption is mitigating volatility. Milton Friedman once said that the third wave of the internet will be a RELIABLE E-Cash. Ask yourself, is an extremely volatile asset class where you can literally go and make a sandwich and your portfolio can go up or down 10% reliable for everyday use-cases, I don't think so.
This is not bearish synopsis by any means, there has been so much maturity in the blockchain markets since 2017 and we're seeing real world use-cases such as DeFi, lending/collateral, advancements in blockchain technology and so much more, however, I do believe that we're still about ten-fifteen years away from mass adoption. What are your thoughts?
