The current bearmarket, with bitcoin falling as much as 83.5% from it’s All Time High; dragging all of crypto with it, is in my opinion more a blessing then a curse
The current state of crypto is actually not that bad. We see capitulation and stories of lost wealth, yes. But what you payed 15k+ for last year, still has it’s technological value, right?
No, actually it doesn’t.
It has gone UP quite a bit in technological value since!
Whatever you might have heard about Bitcoin;
– It doesn’t scale
– No Smart Contracts
– Can’t be used in real life
– Too Expensive
That’s all being changed. Not by yet another altcoin, but by Layer2; and Layer2 is coming for altcoins!
What is Layer2?
Layer2 is technology that has been built on top of the normal Bitcoin chain. In different cases it uses different ways to communicate transactions in real time, pending it on the blockchain when needed.
You might compare it with the intenet where Bitcoin is TCP/IP and Layer2 is HTTP that gives usability to the network of computers.
There are already some projects in the works, one of the most known to the community is the Lightning Network for instant transactions.
With 1,900+ nodes hosting 12,500+ unique channels with a capacity of 460+ BTC on mainnet, it is starting to shape up and gearing up for real world use in the near future!
Other technologies are also in the works. Think about Sidechains, Smart Contracts, … All to simplify and increase the use of Bitcoin.
This has a big impact on altcoins in my opinion.
As more and more functions and usecase of altcoins become availlable to the Bitcoin network via Layer2 solutions, those coins and tokens will lose their purpose.
I’m not saying they’ll all die, some will survive for the foreseeable future, but it is kind of funny to see a lot of them, some of who had multi million dollar ICO’s, being dethroned and one-upped by grassroots and community work.
So, The Blessing?
The blessing is that, even when prices are going down by over 80%, there is still work (groundbreaking some of it) being done to Bitcoin and the overall crypto sphere. They increase the technological value of blockchain further every day and prove that it’s here to stay.
The value will increase, scared money hungry individuals left and we can focus on the future and how we will shape the new world.
Will we see a speculation fueled run up like 2017?
I don’t keep that in consideration, not at the same steep curve.
Will we see a new ATH in 2019?
I think we’ll see 10k+ prices for sure, a new ATH might come at the end of 2019, start of 2020.
That’s another blessing:
Now that we had our first mainstream bubble, we can survive if we build and climb slowly, growing organicly instead of hyper fueled on speculation.