Bitcoin Global News (BGN)
September 11, 2018 -- ADVFN Crypto NewsWire -- If you know about
Dogecoin, then you know that it is essentially the longest running
joke project in the Crypto community. What you might not know is
that Dogecoin’s creator, Jackson Palmer, is actually very serious
about the growth of the industry and continues to be involved in
it, in different ways.
A contemporary article by CCN
attempted to shed some light on the problems that Crypto is
experiencing with regards to driving widespread adoption, with the
help of Palmer’s opinion on the subject.
What resulted was actually quite an
interesting discussion that arguably, many Crypto projects should
take note of and even act on.
In even beginning to understand the
conclusions that were drawn in this article, it is important to
first understand some lesser known truths about decentralized
platforms as compared to centralized platforms. In the context of
this interview that CCN did with Jackson Palmer, the most important
difference to think about seems to be how to incentivize users to
join each sort of platform.
In the Blockchain industry, as
suggested by CCN, most companies seem to run on the assumption that
users will choose the Blockchain over more centralized solutions,
simply due to the ability to own their own data.
Even if we only consider the
overall status of the Crypto market, it truly does not appear that
this approach is working. Jackson Palmer, based on his involvement
in the previously mentioned CCN piece, definitely seems to be in
the camp that agrees with this sentiment.
In short, simply creating a
Blockchain network and marketing it as much as possible as being
better than its logical, centralized alternative is not enough.
Prospective users of these products need more than these claims,
even if they are backed by technical data.
The tradeoffs skew in favor of
staying with trusted solutions. Why would a user leave a bank that
has never made a mistake with his or her funds, for a
Cryptocurrency network that has no extensive ties to his or her
daily life?
What do we mean by this? Another
way to think about this issue is to ask yourself: how does a
traditional currency get its value? The short answer is that there
is a specific supply of it, put together with a specific demand for
it. Inside of this lies the fact that traditional currencies have
value because governments help to maintain that value.
On top of all of this, for a
traditional currency to have value, it has to be usable for
anything and everything that a person needs in his or her daily
life. Just think: what can’t I use a dollar for?
On the other side of things, what
can you use a Cryptocurrency for? As of now, the ugly truth is that
Bitcoin, Ethereum, and all of the rest are hard to use for anything
outside of their industry’s walls.
In the end, until we see
Cryptocurrency prices listed for everyday items like groceries, we
have not quite reached the point of widespread adoption of
Blockchain technologies.
To reach that point, we just might
have to listen to the reasonable advice of the Jackson Palmers of
the space, who are calling for mass incentivizing of prospective
users to retain them and gain more, en masse.
By: BGN Editorial Staff
News:
Cryptocurrencies
Dogecoin
(DOGE)