The image above doesn’t really tell the story but the words are correct. By this I mean when it comes to humans and self-harm there is usually intent, with blockchain it self harms without intent for the most part.
I say for the most part because being a predominately unregulated industry some of those inside the blockchain world often do harm to others for their own financial gain, this harm also reflects on blockchain itself.
When you think about it, its an invention that was created to be its own entity, that being of course Bitcoin. But as soon as blockchain started to have new developers wanting to use the technology that's where things really started to come undone.
Right now at the time of writing there is over 10,000 “cryptos” according to CoinMarketCap website.
Blockchain is 11 years old
Even though in 2021 blockchain and also non blockchain cryptocurrencies saw an explosion of both interest and money pouring into it, mid June 2021 to the time of writing at early July 2021 things have reversed around 40% to the highs they reached.
Obviously some coins growing others withering away but taking away any particular coins or tokens its best to look at the bigger picture.
Blockchain has been around a long time now, and its biggest goal for any and all supporters is the A, adoption. Every month of every year there are new blockchains being released that promise to do so many things, mostly they involve the fiat world or what I like to call the “real world”.
And every time they bluster about these big things going to happen it just never does. The industry is so fickle and without any substance that any kind of celebrity or billionaire endorsements or mention sees everyone flock to it like a seagulls chasing a fishing boat into port.
The question is why has there been no mainstream adoption?
This is a relatively easy question to answer despite what you might read in paid for articles about blockchain currencies, what the influencers or exchange owners tell you on Twitter or what a team of Telegram trolls wants you to believe.
The simple answer is that it is that blockchain technology that was never designed to run smart contracts, do compute work, or any other type of work that isn’t simply ledger based.
Blockchain is Bitcoin, which is a digital currency that is proof of work with mined blocks and a global ledger. That's all blockchain was created to do, a fantastic creation no doubt but the problem is there are many people who think it can and should be able to do a variety of things that are simply not in its DNA.
Another really obvious reason that seems so lost on many in the industry and its peripherals is that while downloading QT wallets may seem perfectly normal to you, keeping and writing down passphrases or seeds and then having that uncomfortable wait until you see it being in a mined block with a confirmation is all great if your into cryptocurrency, but for people who are not, its an entirely new and confusing world.
Even that is not really a barrier but what is a very big barrier that so many are reluctant to face and admit is the other two things stopping blockchain entirely.
Tokenization and Volatility.
Before I speak of those two there are many other factors at plays also, and that is also what complicates things. For example Elon Musk for whatever reason decided he liked Bitcoin then turned his back on it when he found out how much energy it uses across the globe.
On a personal note I don’t think the energy used for bitcoin production is something that would inhibit its global adoption and use if that were to be the case. Ironically Musk in a way ensured this was a reason not to own it or use it.
The fact that Musk didn’t fully grasp or understand the mechanisms of blockchain proof-of-work algorithms and mining early on just shows that another barrier to mainstream adoption is education, with blockchain unless you have been into it for a while there is a lot to learn for a person new to it and while most of a noobies learning is first learning how to not be scammed or ripped off its not really a big surprise that many people don’t even bother.
This is an area that those inside the blockchain world looking outwards fail to acknowledge as being an issue. Every PoS or Proof of Stake blockchain has mechanisms for doing various tasks that are complicated, have some weird names and are confusing to those well versed on blockchain.
The problem that many don’t see here is they want to see their coin or project be adopted by mainstream (because without new buyers of tokens how does the price increase right?) but they fail to understand that the regular public doesn’t want to have to convert real money into tokens, then stake them at the risk of the price going up or down heavily and even if not staking, just requiring people to buy and use tokens is a huge mistake but its the only way for blockchains to make money.
They don’t actually have a product to sell so the coin or token itself becomes the product.
There seems to be a widespread misconception that one-day the world will “wake up” to the magical world of tokenizing everything.
Trust me that's the last thing the world wants or needs.
But for blockchain, as I said selling tokens is the number one priority.
So you have a need to sell by blockchain, a reluctance to buy by mainstream public which combined equals zero adoption, that my friends is where we are today and have been the last 11 years.
This is also the reason why this article is titled as it is, how can it grow without mainstream adoption, the answer is it can’t, blockchain knows this, that's why it creates gimmicks to self feed itself.
This is the big one, forget everything else, this is what makes it a terrible investment or a fantastic investment depending on your timing and luck.
People buy homes or land or other tangible assets because for the most part they will over time usually see an increase in value.
But anyone who got burned by blockchain in January 2018 or April 2021 can tell you that the volatility is extreme. Each time Bitcoin or blockchain in general reaches new highs, has some new eyes looking at it or buying it, it ends up screwing them over by tanking in price anywhere from 20 to 60 percent as I said earlier, we are currently at around the 40 percent mark.
That is not a reliable place to keep money, yes there are other high risk investments and people have been getting eaten up and burned and losing money well before there was blockchain or even an internet, but that’s besides the point.
The point here is that even discounting bitcoin there is no viable reason for any company or individual unless they are a trader to adopt blockchain for their business. A purchase of coins or tokens can either make you rich or destroy you, sounds great for those at home up for a little bit of risk but again this is not something the general public wants or needs.
I don’t have to explain volatility to you, most of you know this is a thing but overlook it, but let me tell you people who are not excited by risk see this as a huge reason to totally avoid blockchain.
The Miners are the ones who control prices
Cryptocurrency, miners are the ones that dictate the price, these guys along with the exchanges have the best of both worlds.
They get paid for mining new coins, they get paid for confirming new transactions then they get paid again when they sell the coins they mine.
This is the cycle they live in, they mine coins, the difficulty slowly rises with the price, then when the difficulty to mine new coins is at an all time high they dump their coins, make a huge profit and this causes the rest of the market to be spooked so they also follow the miners and dump.
Then after dumping the mining difficulty has dropped because there are less confirmations required because there are less transactions so they ramp up mining again doing so easier because the difficulty has dropped and they just made a fortune until the next cycle when they will dump on everyone again, rinse and repeat.
Once the miners have decided their revenue is at a peak, they will then dump as the image below shows.
Once they have maxed out their revenue from transactions they then revert to dumping their holdings so they get a double wammy shot at the money, its the perfect scenario where no matter what happens they win, usually twice or thrice at any given time.
The only ones who loose are the (mostly unsuspecting) fools paying them to take their money twice, once in fees and transactions then again when they dump the coins they have mined.
But don’t just take my word for it, see the image below from Coindesk, a blockchain media company. They themselves unwillingly expose the methods of the bitcoin miners.
Everything to do with blockchain is focused on sales, bitcoin price is high, quick hurry buy some before it runs out, price drops, wow its cheaper to mine better get some now, etc.
Staking on blockchain
This is another method blockchain uses to validate transactions and it keeps peoples money in buying the particular coin. Most staking, not all, does allow the user to un-steak or sell their coins if they need to, but others turn their stakers into prisoners with “disolve” times to unlock coins.
A recent one is the ICP coin where it has lock ups for up to 8 years and people have money trapped where they cannot get to it right away because of dissolve requirements.
Very hard to take for some people when the price drops and there's nothing they can do so salvage their money.
But a bigger issue for blockchain is with staking itself, what good does it do the average person?
I had a conversation with someone recently on Twitter about this where I pointed out that staking ADA (It applies to any Proof of Stake blockchain) that they have no revenue.
Other than someone buying the token or coin for a higher price, blockchain doesn’t have a revenue. This applies to XRP, all of them, they don’t have an incoming revenue.
So why buy it if you not just a trader looking to get in at a lower price than you get out at?
The reason seems to be belief, a belief that staking is a pathway to wealth because one day, let me say that again “one-day” people all over the world will use blockchain, in particular my blockchain and therefore my investment will be worth 20,50, 1000 times what I entered for.
That’s okay, there’s no laws against aiming big, having big dreams or goals but one thing that often is overlooked when trying to achieve these goals is reality.
And that reality is that in over 11 years no blockchain has ever been used by the mainstream public, be that BTC, ETH, ADA,XRP, none of them after 11 years in total has seen adoption by the mainstream public.
Its all a big lie perpetrated by the blockchain media and by early investors which coincidently also happen to be the biggest influencers in the industry.
What does the future hold for blockchain?
In this authors opinion the blockchain industry will just keep rolling along, there will be hacks, thefts, smart contract exploits but because it feeds a desire to be rich all be it falsely, it will carry on as it is, never really finding a home or an every day use by mainstream.
Media sites like Cointelegraph are just propaganda websites owned by the miners, if you look at their tweets, they tweet absolute bullshit most of the time, and repeat their tweets every 4 to 6 hours.
Its like a North Korean propaganda channel, it is non-stop blockchain stories of adoption in which they often blatantly lie because there is zero regulation or accountability.
You would think by now people after 11 years will have realized that blockchain as a whole has made small groups of people very rich and the everyday person would be wise to it but their dream of being rich is stronger than any factual negatives about blockchain.
It is a inherently corrupt industry with as I said zero accountability. You only have to look at one of the most promoted blockchains earlier this year that just shutdown after dumping all of their tokens Insolar.
While its not Cointelegaph’s fault that Insolar exit scammed the lesson learned here is they will promote anyone for a price.
This applies to all of cryptocurrency media, they all take cash-for-comments and this has been proven publicly.
Its just a money making propaganda machine that keeps blockchain alive.
Personally I knew Insolar where a scam when they first launched, all of their marketing material had fortune 500 companies all over it with the inference being they were some how affiliated, but it was only that they had some former staff members from those companies.
What made it worse was their follow-up marketing which did the exact same thing, a faux partnership with Microsoft.
Anyone who spent 10 minutes researching like I did would have seen there was never a “partnership” it was one of those use our product and join up and we will class you as part of our ecosystem offering you support and guidance etc.
In other words its a service Microsoft provides if you pay to use their service, its not a “partnership” per se, its a program that ANYONE can join.
That’s just one example of blockchain skullduggery, you can see it plain as day, every single day if you know what to look for.
The purpose of sharing this is to educate people, so many take things at face value when with blockchain, with no rules, no regulation, no oversite and differing global regulatory bodies you can pretty much say and do whatever you like with impunity.
Its a dirty industry dressed up in Lamborghini's and cocktails in mansions.
The purpose of this article is to help some people to open their eyes to reality.
Do I hate blockchain? No I don’t, but I do hate the lies and deception associated with it, I hate that innocent people get taken for a ride after receiving incorrect information.
I also think there are many people out there who enjoy feeling like they are part of something, they will put some money into one or several blockchain projects and are given the opportunity for their voices and opinions to be heard and to interact with other like minded people.
I think this is a good thing and its also important to point out here that people who are 100 percent into blockchain or working in the industry are not all bad people with bad intentions, yes there are some, but the majority of people who invest are good people with good intentions, and they are usually the first to be financially harmed unfortunately.
For your own sake I do ask you to cast your mind back to what I said about use cases, doesn’t matter what blockchain you’re in, look at it realistically and ask yourself these questions.
- How long as this blockchain been operating and why has it not been adopted mainstream yet?
- Why would anyone adopt it and use it if the token suffers from volatility?
- Who makes money from transactions, me or the blockchain miners?
- Do the “owners” of the blockchain have a business plan for revenue and when is that revenue expected and how much is it?
- How much of the currency is owned by the creators?
That’s just a few questions and I’m not even going to get started on the lies told by blockchains about using them as data centers or for running applications.
If the blockchain general public actually understood how many of their supposed decentralized projects were actually relying 100 percent on centralized data/cloud providers they would be scratching their heads.
But that’s an entire article coming soon.
Until then, adios, hoped I helped at least one person stand back and take a look at what they are putting their money into, and how they interpret what they read from the blockchain media.