Bill Clinton’s former senior economist, Nuril Roubini, couldn’t seem to stop talking about ” useless ” cryptocurrencies. Wall Street wolf Jordan Belfort said Bitcoin is heading toward a scrap yard. But Forbes reporter Michael del Castillo believes that bitcoin may eventually fail, blockchains may prove to be nothing, but they are not yet.
The early claim of bitcoin death occurred when the cryptocurrency value was only $ 0.23 . It is now worth nearly $7,000 .
In 2010 , Bitcoin was declared dead six times in a year as prices fluctuated between $ 3.12 and $ 19.73 .
During that time, Bitcoin struggled to survive, and the first early branch or copy of the open source code attempted to create value through the original code written by Nakamoto. At the time, it was widely believed that there would eventually be only one type of cryptocurrency, a global financial dollar, that would evolve to include the best of all possible cryptocurrencies before the old statutory currency issued by the central bank dies.
Then, in 2014 , Ethereum became popular, and many people thought that cryptocurrency had a coding language that could be used to write distributed applications, which was the death knell of Bitcoin. When the US Internal Revenue Service stated that the owner would have to pay taxes on the proceeds, others saw the end of the previously unregulated bitcoin. When Mt Gox, the world’s largest bitcoin exchange, was forcibly shut down by a massive $ 500 million hacker, many skeptics claimed that the cryptocurrency had died. When the FBI closed the Silk Road market for illegal goods, Bitcoin experienced a catastrophic crash that many considered to be prices, falling to$ 418 .
The state of cryptocurrencies has become so bad that a new website dedicated to “DeadCoins” lists more than 900cryptocurrencies that are no longer active. But starting with the first claim of bitcoin death, Bitcoin has been slowly rising to $ 6,477 , with a total value of $ 111 billion. Ethernet Square worth 230 billion dollars, XRP worth 110 billion dollars, the total market value of currency encryption 2040 billion US dollars.
If Bitcoin allows users to question the role of banks in global finance, then any other intermediary – from the central securities depository to the land title registry – may reimagine. But the latest round of skeptics also expressed doubts about these and other possible use cases.
According to a report released last week by Deloitte , more than 90 % of the nearly 27,000 blockchain projects in theGithub repository are no longer active. However, according to a 2012 Harvard Business School report, this figure is only slightly higher than the failure rate of any startup , and compared with traditional wisdom, 90 % of startups have failed.
So what happened here? Why is the entire industry declared dead when its startups fail foreseeable? Why don’t we declare restaurant deaths or health care deaths or technology deaths because a large part of their startups have failed? It’s hard to say yes. But one obvious possibility is that the vested interests of success or failure of the blockchain are strong.
If a counterparty can connect directly using open source technology, then any financial institution or intermediary who makes money may see a drop in profits, and they spend money on defensive research accordingly.
At the same time, as long as someone chooses to trust cryptocurrencies and blockchains instead of traditional intermediaries, the innovation of bitcoin enthusiasts will remain viable.