Cryptocurrency Giant Companies Begin Serious Growth Pangs
Cryptocurrency analysts term the current phase of evolution of the decentralized technologies as an ‘emergent’ phase as ecosystems in this sphere, across the globe mature and aim for scaling of operations. Companies which have built themselves a niche in this spectrum are all set for a rapid expansion phase, from which only a few are likely to emerge intact.
Past the Bubble Burst
Comparing cryptocurrency evolution with earlier technology, the Internet Technology, at the turn of the millennium, the analysts now see the alternate coin cyberspace as having moved past the testing dot.com bubble burst.
They see crypto coins in a phase of development and growth and leveraging this maturing ecosystem are entrenched giants. The next phase is likely to be very rapid in its evolution, predict the analysts. It is also a critical period for most businesses as the competition will be killing and only those with the fundamentals will be able to emerge as a survivor for the long haul.
The bubble phase included any and every type of coin builder announcing and ICO and pushing its token onto fly-by-night exchanges which leveraged crowdfunding to remain afloat.
As more coins arrive on the scene and the process of generating or ‘proof of work’ for established coins such as bitcoin and Ethereum become more expensive, only the big players are likely to survive the shift in fortunes in the industry.
The wave of the bubble was the brief period between 2016-2017, when the price of bitcoin and the Ethereum rose from their humble beginnings to commanding unprecedented prices of $20, 000 and $1,800 per piece. The high prices, the operating margins that these prices allowed server farms to leverage soon began to become a noose around such large-scale crypto mining operators. The end result is the clamping down of more entrants into the halcyon ways of planning for not gold dust but virtual coins.
The bubble signified the speculative prices and the greedy, quick-buck making business. However, now in cryptocurrency evolution, the benchmark has just moved past the bubble burst, and it will now be left to the ways and methods of the reputed players with deep pockets and cutting-edge technology to make the cut.
Bitcoin first appeared on the technology horizon back in 2009. Nine years later there more people who know about cryptocurrency and its mining than what the world knew about the internet and its uses. Thus, the parallel in the two industry evolution ends at this stage perhaps.
In fact, it is the ease of access to information on the internet that has bred early and easy adoption of the cryptocurrency world. The decentralized technologies which back these coin ventures are advanced in its applications and are setting the course of action across industry spectrums. That it made its debut on the currency sector first, is a mere afterthought. Just as the internet has superseded nearly everything from communication to computation, blockchain technologies will usher in a new way for humankind.
Cryptocurrency is only the tip of the decentralized database adoption. Exchanges supporting the mature and sustainable coins are set for long-term growth in the days to come, post the bubble-burst.