Back when Bitcoin was first launched, it was met with a wide range of reactions. Some were hopeful for the future of cryptocurrencies and the potential for future development in blockchain technology, assuming the digital currency spurred enough interest to drive more eyes and development dollars to various projects. At the opposite end of the spectrum were those initially doubtful of the potential success of this approach to decentralised potential wealth to the point of parody. Dogecoin was initially launched as nothing more than a joke meant to poke fun at the apparent insanity of a currency backed up by nothing but public faith.
The Surprise Rise of Cryptocurrency Value
Five years later, Dogecoin is now collectively worth several billion dollars. What started off as a jab at cryptocurrency has begun raising questions about the future of blockchain technology in the public eye. At some level, most any cryptocurrency will hit a point of some infinitesimally small value over time. Hitting a penny per share is slightly more unusual, let alone a combined total value higher than the GDP of some extremely small countries.
Speculation and investing into currencies on the off-chance they rise in value in a way not unlike Ethereum or Bitcoin has led to an influx of currency bubbles that are on the verge of bursting, as is the case with Ripple, which has experienced fair price fluctuations as it teeters on the verge of its own potential maximum worth.
Investing in Alternate Futures
Where does that leave the blockchain? As a currency, the future of blockchain technology for public use is still uncertain while government-backed paper currency and digital bank transactions take up the lion’s share of the public’s wealth. Digital currency and its value may fluctuate wildly while personal wealth is at stake, but the potential future for blockchain is much greater than the sum of a memetic currency: Some speculation towards the future of private data and records handled in an encrypted digital manner, rather than through potentially unsecured public terminals or paper hard-copies, leaves space for technological growth.
In this way, the surge of Bitcoin brings about a double-edged sword of public awareness of a technology versus the novelty of a technology wearing out its welcome before it is fully explored. In a best-case scenario, the hype surrounding Bitcoin’s meteoric rise should paint a positive picture towards the potential of the technology as well as the possibility of the public deciding what is and isn’t worth investing towards.
Though not used very widely in the financial realm as of yet, there’s plenty of room for experimentation. We may still be several decades away from a digital marketplace where work is bought and paid for across a blockchain-centric technology, but the potential for applying some of its inherent security-minded properties could assuage common online transaction fears.
Will wild speculation and investment cause a total crash of blockchain technology interest? Unlikely, given the unique advantages it offers, even without a digital currency driving forth public interest. At worst, it may be wise to keep your money to yourself for a while and see how the market stabilises before pushing for investment in these currencies, but keeping a close eye on how the technology develops could be an even wiser investment of both time and money.
