Most longtime cryptocurrency insiders have gotten used to the massive strides that cryptocurrencies and blockchain have made. It would be easy to assume that colossal levels of growth will continue indefinitely, or at least until most people can use blockchain apps without even realizing that it’s blockchain. However, Vitalik Buterin warns that the exponential growth cycle is nearing an end.
“The blockchain space is getting to the point where there’s a ceiling in sight. … There isn’t an opportunity for yet another 1,000-times growth in anything in the space anymore,” Vitalik Buterin told Bloomberg.
Part of the problem, Buterin believes, is that most people have already heard the term “blockchain” at least once and as such, there is now a limit on how far marketing and adoption can go in growing the industry. Industry insiders now risk hitting a dead end when using strategies that previously worked.
Other Industry Insiders Disagree With What Vitalik Buterin Had To Say
Coinbase CEO Brian Armstrong is one industry insider who disagrees with Buterin’s viewpoint. In a recent interview, Armstrong predicted that cryptocurrencies and blockchain can still see exponential growth and exchanges like Coinbase could become as influential as the New York Stock Exchange. While he still felt that it was up for grabs whether regulators would consider all tokens as securities, he also said:
“It makes sense that any company out there who has a cap table should have their own token. Every open source project, every charity, potentially every fund or these new types of decentralized organizations [and] apps, they’re all going to have their own tokens.”
Armstrong went on to say that the downturns in cryptocurrency prices could be good for the ecosystem because it gets rid of people who are in it for the wrong reasons, and gives people who are in it for the right reasons time to build and prepare for the next bull market. Many of the same people who bought during Bitcoin’s highs in December 2017 also sold at massive losses when the prices plummeted in 2018.
However, the people who are still involved are the ones who are building decentralized freelancing platforms, property rental platforms, and parking space rental platforms — all things that consumers are likely to use every day without thinking much about the technology under the hood. The builders are most likely to be ready with a solid foundation when markets start seeing plenty of green again.
Who makes the better case on this issue? Vitalik Buterin is probably correct when he says that marketing and adoption will only get the cryptocurrency and blockchain niche so far. Brian Armstrong also makes good points when he says that tokens are a sensible thing for every organization and project to adopt and now is a good time to develop and build on the technology.