Vitalik buterin pointed out that although the Bitcoin ETF is good, its only good to take the price up. According to him the adoption of cryptocurrencies in mainstream businesses is more important fundamentally then just prices going up. While the investors and world at large look through an investors eyes at probable dates for a much-awaited approval of Bitcoin ETF by SEC, Vitalik comes up with his viewpoint, definitely with an eye of a blockchain entrepreneur.
Bitcoin ETF only good to bring prices up- Vitalik
Cryptocurrency and its underlying technology, blockchain have been buzzwords since last year. The internet is filled with literature about how these new technologies have the potential to change the way business work- providing more transparency, speed and yes in cases an anonymity.
But as the prices of these cryptocurrencies picked up at the last quarter of 2018, the complete media started focusing on rising prices and how investment in cryptocurrency made sense leaving behind its core fundamentals of how it will be adopted by business. If someone is asked today about the prices of Bitcoin and various altcoins they will be in a position answer but if ask them regarding their use case or the technology behind the altcoin not many would be in a place to answer.
This is because people are slowly drifting away from the actual philosophy behind these technologies and why they were created in the very first place. This is what Vitalik points out.
I think there's too much emphasis on BTC/ETH/whatever ETFs, and not enough emphasis on making it easier for people to buy $5 to $100 in cryptocurrency via cards at corner stores. The former is better for pumping price, but the latter is much better for actual adoption.
— Vitalik Non-giver of Ether (@VitalikButerin) July 29, 2018
If his tweet is elaborated, what he says makes sense as if something that has to change the future of cryptocurrencies it has to be the technology and its adoption and not a financial product that attracts investment and take the price higher. Cause after all the news around fades out, the actual thing that would be required for prices to sustain and investors to make money in the crypto markets would be the fundaments of each coin or token- which is its technology and how it is accepted by the businesses for mainstream usage.
If fundamentals are ignored what would be left behind is a speculative market which would be filled with volatility something that is keeping a lot of investors away in any case. Hence even a Bitcoin ETF would not be able to hold back investors in the game if the coins don’t deliver fundamentally.
Vitalik echoes Jeffrey Wernick and Brad Armstrong’s sentiment of about cryptos
Jeffery Wernick early investors to Bitcoin, in his interviews with Sara Silverstein of Business Week, also commented on same lines what Vitalik is trying to point out, that in the haste of making quick money in the markets most people today, have either neglected to recall or totally forgotten the philosophical purpose which underlined Bitcoin’s creation. He believes that people now in the business were not there in 2009 and 2010 and hence they didn’t care about the philosophy and hence the whole purpose of cryptocurrencies is slowly turning from its utility in businesses to more of an investing tool.
Brad Armstong had also commented on the same while he spoke to his staff last month. According to him, the volatility in prices cryptocurrencies was majorly due to speculators and people who understood technology and crypto businesses the least.
While Vitalik has tried to bring the attention of the investors to the basics of why one should invest in blockchains and not just drop your money because of the news feed, its still would be difficult to convince a lot of people who get carried by away by a lot of media bombardment and invest in for reason that may not be as effective for crypto prices in the long run
Will efforts like that of Vitalik change the viewpoints of the investors or will media continue to rule the roost? Do let us know your views on the same.