Is the Crypto Industry Failing?

by birtanpublished on August 25, 2020

Is the cryptocurrency industry failing to live up to its initial expectations and to the really the initial vision of what we all expected are we doomed to fail as an industry at large what's going on everybody it is your boy Krypto Bobby I hope you are having a great day

Great night wherever you are watching or listening in from and today I want to take a step back and look at where we are as an industry there were a couple different things that inspired this conversation number one was a breakfast

That I attended this morning with about eight or so people that are working full-time in the blockchain industry in one form another as well as a tweet storm that meltem de mirrors put out that I really enjoyed I thought it was

Good and I thought it sparked a good conversation as well so I want to take a look at just the thought process around are we really failing to meet the initial expectations are we not living up to the vision that so many people had

In regards to disintermediation to decentralization and to have around to a variety of other things there as well so we're gonna get into all that and more today just a quick aside if you happen to be looking for a job opportunity in

The blockchain or cryptocurrency industry I run a company proof of talent we're a technical recruiting firm that works exclusively with companies the blockchain and crypto ecosystem primarily are job opportunities right

Now are with clients in New York and San Francisco but if you are interested if you're a software engineer if you're a trader project manager a lawyer a variety of openings that we have currently would love for you to check

Out the the website proof of talent Co slash careers I'll put a link below in the description as well and on another note if you are not interested in new opportunities they're already working and happy in one but you happen to know

Somebody proof of talent offers a $1,000 referral bonus that we pay in USD Bitcoin or eath so if you happen to know somebody and you refer somebody that we end up placing thousand dollars to you so just a quick aside but wanted to

Throw that pitch out there because obviously gotta show the biz so today I went to a breakfast like I said and it was it was it was great I of the opportunity to to meet and to chat with people in the crypto ecosystem

And this stemmed from a private private group that I'm in and it was it was a wonderful breakfast got a chance to obviously slam as much cold brew as humanly possible but talked a lot about just the the different things that are

Happening in the crypto industry and it was it was a really good kind of varied crew of developers product people investors the lawyers so it was I don't know eight or ten folks or so and it was funny because we were kind of having a

Conversation and somehow the conversation geared into this almost this this disillusionment of of the industry as a whole we're you know we're talking about hey the in the the VC investment type folks we're talking

About you know what are you looking at that you think is interesting what are you excited about what are you passionate about in the industry and we all kind of looked at each other and then somebody have just joked and said

Well let Bitcoin I guess and and then the conversation was like oh well seriously what do you what do you what do you actually think and there is this kind of we're at this phase at least and maybe some of you have worked full time

In the industry maybe you haven't but for the people that have I guess been on the inside of the industry as a whole where you've gotten a chance to build products or invest in products or see the progress or see things just behind

The scenes with you know what the curtain pulled off you you get a feel for just how everything is meeting expectations and how quickly everything is moving along and sometimes things either aren't as they appear or just

Moving a lot slower than they are and it's funny because there are a lot of people obviously they're still super super passionate and proactive and just gung-ho but if you've like worked full time I almost there's this just like

This TRO of disillusionment that you go through eventually and you know maybe you get out the other side maybe maybe you don't but it was it was really funny to just have those conversations and also feel the same things that a lot of

Other folks kind of felt and I think some of it is also related to to this and a kind of transition this is somewhat of a rambling story but a transition to this conversation that I saw on on

They kind of just really combined the my thought process in general but meltem de mirrors I don't know if this was from her presentation at at crypto Springs or if this was just something that she did for coin chairs or what but she said she

Had this whole tweet storm and some some good picture or some good a like PowerPoint slide type things but she started off by saying in the crypto community we love to talk about things like choice and access selfs self

Sovereignty privacy consent and removing rent-seeking but when we take a hard look at what we've built the majority of the value in our industry is being captured by intermediaries so if you look she lists

The most valuable companies in the space companies like coin based having an eight billion dollar valuation bit mechs having a five billion dollar valuation Kraken being a five billion or a four billion dollar company finance being a

Valuable company and then other companies also being intermediaries such as the the Gemini's is the bitch Rex's there were publics the harbours that securitizers even the lollies and the ledgers although I don't necessarily

Know about about that so we'll hop into that but she said you know there are new business models emerging on both the cypher funk cypherpunk and of the spectrum and then quote-unquote my dad or the things that a grandparent could

Potentially utilize in the cryptocurrency world and saying you know not your keys not your coins but then looking into basically when you see about how much custody cryptocurrency exchanges are are provided and and what

A lot of that means and and she eventually asked the questions towards the end about how do we allow for more participation in this industry via intermediaries without losing the message of you know Bitcoin is for the

People Bitcoin is about principles it's a cultural movement and you know a lot of that culture is about possessing keys to your coins and about self sovereignty and a variety of other things so she asked that question like how do we look

For the participation with the intermediaries and my thought process on this really is that it's not an issue that we have intermediaries in the cryptocurrency space the issue is actually with the use

As a whole when you think about cryptocurrency and I would love to hear your comments if you're watching this on YouTube or if you're on the podcast always tweet me at crypto underscore Bobby but if you are watching this right

Now on YouTube I would love to hear your your number on this so comment below but I would say over 90% of the cryptocurrency industry is is pure speculation right now you could probably go even higher but I would say at least

90% and why do I think that that matters as a whole well when you are speculating about cryptocurrency when you are treating this purely a treating Bitcoin or other crypto assets but you know treating Bitcoin or any crypto currency

As a speculation as a speculative bet you probably don't care as much about the ethos of cryptocurrency you don't care about choice and access you might not care about removing rent-seeking you might not care about self sovereignty

You really don't care about that you are looking at a bet of is this number gonna go up or is this number going to go down and if it is easier for me if it removes a step if I feel safer utilizing a coin base or a bit max or a Kraken or a by

Nance to custody my keys I don't really care problem as a whole with this scenario is that when the use case is speculation when the use case is is simply trading these assets well of course the

Exchanges are the most valuable places P is there that the tools they are the the picks and shovels that people are utilizing to actually trade those cryptocurrencies and there are obviously generating fees and generating revenue

On top of the speculation of other individuals now on the other end of the spectrum when you look at just the chart in general and I'll include a link if you're listening on the podcast to the tweet from meltem but I would say them

The the least valuable off the top of my head I would guess she has a column about utilization and there are a couple different columns there in general but the most valuable being the speculation with coinbase bit max Kraken but then

There's also the you know the circles the Gemini's the shape shifts the the block chains etc but I would say the least valuable of these startups is likely going to be the ones where you're actually using cryptocurrency to

Spend it or to transact with it looking at something like a casa or a lolly or a block Damon or a ledger or a fold those startups in particular are mostly built under the premise like especially something like a casa or a ledger or

Maybe a fold or a block Damon but especially something like a casa or a ledger I mean those startups are really built to provide individuals the tools that they need to have their own self self sovereignty and to have their own

Choice and access and to run their own nodes or to you know maintain their own keys etc and those are probably the least valuable in comparison to decentralized exchanges but and why is that why is that the case well when

Everybody is is speculating when the entire industry is mostly speculation and not the original use case all the value accrues to everybody that is enabling the speculation so on a surface level yeah it does look like right now

When you evaluate certain aspects of things if you think about the the crypto industry or the Bitcoin industry at large a variety of other of these components when you look at that it does look like yes we are quote-unquote

Failing on the original vision of everything however these things take time they absolutely take time when we're talking about a probably a multi-decade paradigm shift when it does come down to

Actually seeing real utilization of these crypto assets and of course right now it mostly is speculative I think any anybody with a brain would would not argue that that it mostly is speculative but these things will come through and

They will take time and it's important to be patient so I don't think we are failing I don't think we are doomed but I do think that people are very impatient especially because Bitcoin and then the

Other crypto assets as well but because it all trades on a 24/7 365 basis so when you are looking for something to be adopted you see and announce me you see something like back and you're like okay fact is launching all the institutions

Are gonna come in on day one and then everybody may may or may not sell Bitcoin because backed isn't getting any pick up things take time and people are incredibly impatient when you have something that trades on a 24/7

365 basis on the subject of intermediaries there was an interesting article in the past day or so from coin desk and Li Q and they're talking about the title being light coin sucks but it could help build a Bitcoin economy and

One of the cofounders of lightning labs which is one of the most prominent companies in the Bitcoin lightning ecosystem that actually left due to some I think disagreements with the team that's there now about the the future of

Lightning but he said that profit is a bug and when you look at the industry as a whole I do think it's relatively funny but also a challenge that a lot of people don't want to necessarily acknowledge because there is this this

Kind of distaste I would say for for companies that are trying to generate profit and whether you want to call them intermediaries whether you want to call them rent seekers and I think everybody that makes a profit in crypto is now

Somehow called a rent seeker which I don't think is correct at all and I don't think accurately fits the description of a rent seeker but you have this this thought around profit being a bad thing and I struggle to see

The sustainability of some of these ecosystems if there are not people within the ecosystems that can generate profit to continue on in the development and it is somewhat contradictory towards the open source decentralized at nature

Which is why I still think the whole kind of industry fascinates me so much from an open source development perspective where I've talked about litecoin and grin and and Bitcoin and and all these other all these other

Crypto assets and in black chains that have development ongoing with them and may or may not be struggling to either pay developers or to fund their continued development and you have so many of these companies in the crypto

Industry that either raise money in the token sale or raise money through VC and just have no idea how to turn profit and it just is really difficult in the long run I think if you don't have some level of monetization idea up front

And just say hey you know in the future we're gonna offer premium services it makes things I feel like fairly difficult so this is one of the things that not just on the on the the Bitcoin lightning Network that that fascinates

Me I think it goes way beyond that it's it's an industry-wide thing that somebody might say profit is a bug but then at the same point in time you know how are you gonna pay a salary how you gonna pay your rent how you gonna do

Anything unless you are literally just counting on venture capital funding on a continuous basis to fund a potential unprofitable company which you know apparently Silicon Valley has no problem with with all you know the weworks of

The world and all those types of things but still some fascinating things that are occurring on a consistent basis with the industry at large and something that I am personally keeping an eye on when it does come down to these

Intermediaries and whatnot so we'll have to hear your comments to like when you look at the the blockchain and cryptocurrency industry do you feel like now we are we're failing and we're just not coming through with the initial

Mission are we doomed in the long run or is this something that people are just not having the patience with and just need to take a chill pill and relax and and wait for things to develop in a potentially positive manner we'd love to

Hear your thoughts in the YouTube comments as well if you're on the podcast always hit me up on twitter at kripp to underscore bobby and if you enjoyed this video make sure to hit that thumbs up

Button if you're on the podcast leave a rating interview crypto bobby signing out hope you have a good one peace

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