TLDR; No, Crypto is not dead.
Yes, there are problems and yes, there are plenty of reasons to criticize it. But that doesn’t equate to death.
In fact, it’s quite the opposite and is significantly better than its early years on a technology level.
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5 Reasons Why Crypto Is Not Dead
- Reason # 1: The price has dropped significantly since it’s all time high – Welcome to the club. Price is cool and all but it’s no barometer for the quality of technology. The code and protocols behind Crypto should be looked at on their own merits by its users.
- Reason # 2: The US Government is attacking US based Crypto businesses – You have guys like Brad Sherman, a US Congressman, calling Bitcoin an “electronic pet rock”. Then there’s Gary Gensler, current SEC chairman, who thinks most if not all Crypto assets are securities and is willing to fight about it.
- Reason # 3: Uncertain Taxation Requirements – The IRS Notice in 2014 officially declared “Virtual Currencies” to be property which puts them under the purview of the taxation rules of that asset category. Beyond that, there has been little to no additional regulatory guidance.
- Reason #4: It’s Hard to Build On – Not only is the technology difficult to build on but the management of communities and stakeholders are challenging. Add on the fact that most tokens are denoted in Bitcoin (BTC) or $, maintaining a reasonable value can be very challenging especially during bear markets (like now).
- Reason #5: A Lack of Cross-chain Interoperability and Compatibility – There is still a lot of friction going from dollars into Crypto and also Crypto to Crypto. The Inter-Blockchain Communication (IBC) protocol brands itself as a solution but we have yet to see full functionality rolled out to scale. Still, the current proof of concepts work well thus far.
While Cryptocurrencies are by no means dead, they are under significant pressure from every conceivable Government and Banking financial authority worldwide.
Despite this, Crypto continues marching on year after year and ultimately has improved greatly on a technical level.
Further Reading and Resources
- It’s 2023, Is Crypto Dead? 5 Reasons Why Its Not (But Is Still Hard)
- The End of America’s Cultural Hegemony Is Here [TIME]
- Raoul Paul – Real Vision
- Navigating The Complexities Of MicroStrategy: A Business Intelligence And Bitcoin Trust Hybrid [Seeking Alpha]
- Inter-Blockchain Communication (IBC) (originally proposed by Cosmos)
- Antelope.io IBC (formerly EOS.io)
- IRS Tax Ruling Notice 2014-21
- The Story Behind Gary Gensler’s SEC Strategy [Forbes]
- Anti-Cryptocurrency Congressman [Brad Sherman] Funded by Big Banks
- Emerging Technology 101 and How To Start Your Tech Journey