Bitcoin’s proof-of-work is considered overly conservative by some of the newer proof-of-stake blockchains. The Lightning Network is an example of how businesses can prepare now for the advent of stable Bitcoin prices. It speeds transactions while easing the workload on miners. The ability to perceive is important in this industry. Often times a blockchain will discuss what it hopes to achieve, rather than, what it can deliver now.
Investment Attitudes in a Volatile Market
Saleh Stevens says that new crypto investors need to watch out for getting too personally attached to their investments. The main reason for this is the volatility of the cryptocurrency market. For Bitcoin investors, volatility is lessened but remains high compared to traditional investments, at least in the short term. Bitcoin still comprises nearly half of the crypto market. This is an advantage over initial coin offerings (ICO) new to the industry. As the first of its kind, it is seen as a conservative investment compared to other coins.
Overall, attitudes toward crypto investing means taming emotions. This is why the idiom HODL, “hold on for dear life” became so popular in the crypto space. It is important to HODL amidst FUD, “fear, uncertainty, and doubt”. When analyzing a new ICO, it is prudent to not fall into the trap of FOMO, “fear of missing out”. These idioms demonstrate the business culture needed to survive until the price of Bitcoin stabilizes.
Recognizing the Change in Global Culture
Saleh Stevens discusses the impact Bitcoin is having on global payment systems. A business that uses a stateless digital currency is quite different from its mass adoption. The current global payment network was a long and enduring process. Yes, credit cards have forced change that benefits the shift toward cryptographic transactions, but viability is still lacking. Ironically, the unique crypto platforms, promoted as trustless, might be the biggest obstacle.
Decentralized data and cryptocurrencies are not synonymous terms. Blockchains are not isolated to the financial sector. Medical organizations and governments look to improve the way they use their data. Blockchain technology, not necessarily cryptocurrencies, promises innovative solutions. Many large organizations look to weed out the decentralized aspect so as to reap similar rewards to current projects like Bitcoin.
Embrace the Power of Disruptive Elements
Cryptocurrencies are becoming a lifestyle that investors, like Saleh Stevens, have come to enjoy. It is driving a digital revolution unlike anything is seen before in the business world. Embracing its power will be important as it disrupts key elements of established business practices. Sitting on the sidelines could be the same as stubbornly adhering to outdated practices. That is if ongoing partnerships fail to adopt blockchain technology. On the other hand, early adoption could yield compounded profits during the transition to the blockchain.
Transparency is one aspect that has flourished and fostered innovation. It has earned trust among investors. This trust is different from ICOs that ran away with investors’ money prior to delivering a blockchain. Transparency in a blockchain allows investors, as well as, users to easily see what is happening on a blockchain.
There is another important point here. Users of blockchains are often investors and not just taking part of in transactions. Sometimes investment is necessitated as in a blockchain that requires holding a certain amount in escrow to fuel transactions. Businesses preparing to establish operations in bitcoins would be wise to grasp that they will not be buying a traditional service to what has become customary in cloud computing. Developing an investor mindset will be all but necessary.
The future of cryptocurrencies and distributed databases is not easy to predict. Preparing for an industry where all that is certain is innovation means embracing the technology. While it is not necessary to join the development teams, it is important to grasp how blockchains differ. For business, this pertains to the most useful applications and exploring common use cases. It might be as simple as encouraging customers to embrace the power distributed to them by hosting their own node. This would be especially impressive in the instance that a company has its own blockchain or sidechain. Ultimately, a business must be both open-minded and critical to prosper.