To everyone who doesn’t watch John Oliver: You should probably start. It is an amazingly brilliant and very entertaining show. Here is the episode to catch up.
To everyone else: Last week’s piece on Cryptocurrencies and Blockchain gave me a bit of a ponderous night and I decided it is worth a written thought.
Besides revealing some next level insane aspects of the crypto industry, he did a pretty decent breakdown of what Crypto is and potentially could be, concluding that investing in Crypto is:
a) A psychological mass phenomenon of FOMO (Fear Of Missing Out)
b) … not actually an investment but a gamble.
Overall it was a classical position of the establishment. Its Fear Of New Technology ;). But for me it also raised the question of, how can we be so sure it actually is a thing?
It most definitely is always hard to judge the potential of a technology in its infancy. No one actually knows if it is going to have a fundamental impact on how we organize and operate as a society. But we do forget that we are always only looking at a window in time. Electric vehicles have flopped hugely – up until today. So, it is not just a do or die scenario, but a situation of potential in context. The knowledge about who is driving it, in which direction and with what financial weight behind it is what revels its true action potential.
Looking at the interlaced relationships of various huge technological break throughs that are just being utilized, are on their way and are being explored right now – whatever your bet is, it’s better than assuming things will go on the way they are right now.
We also already lived through that with the internet. Still are – but just for the sake of this argument, look how it already changed our world, our jobs and communication. Never in human history before we had a situation where children had more knowledge about how the world works than a 60-year-old.
Technology is a generational thing and so is Crypto. I agree it is still a gamble, as it really is impossible to say exactly which currencies are going to do what. It is a hype that has little or nothing to do with the reality of its mind-blowing technology – but who cares? Fact is, it really is a mind-blowing technology, that will be crucial to unlock machine-to-machine-trade in the future, giving us a currency with traits that are dearly needed in modern times and that traditional currencies simply lack. And as I stated in my post on the Cryptocrash – trust was the hardest step to accomplish.
And even if the parents do not trust in it, their children do.